Credit cards are a widely used means of payment, but they are also “feared” since, when used in an unruly way, can bring problems. So the more, and the better, we are informed about using credit cards, the better financial decisions we can make. Do you know that can you get cash back with your credit card? Did you know that the correct use of a credit card can benefit you when you want to apply for a loan? In this article, we will address several situations in which it pays to have a credit card.
cashback allocation
The term cashback means money back. For example, if you have a credit card with a 2% cashback, it means that for every purchase you make with that card, you receive 2% of the amount back. That is, let’s assume a purchase of €500, when paying with your credit card you receive €10. However, there are some situations that you should analyze before getting a credit card with cashback modality. First, you must choose the best cashback percentage. At the same time, you must assess the annuity and interest rate associated with the card. When the benefits are greater, they can increase the burden. Thus, you must understand if it compensates for a certain percentage of cashback, the annuity and interest that you will pay, because, sometimes, no matter how significant the benefit, may not compensate for the charges.Another situation to take into account is the imposed limits. Sometimes, to benefit from the cashback percentage you must have expenses above a certain amount. In these cases, you must use these cards for larger expenses, in order to maximize repayment next month. Also read: Are you going to use your credit card on vacation? 10 redoubled care
international transactions
Another situation where it pays to have credit cards is related to the international transactions. Are you going to travel abroad? Having a credit card in this situation pays off, as these are accepted practically all over the world. (unlike a regular debit card). However, it should be noted that the fees associated with credit cards vary depending on whether countries within or outside the Eurozone. Within the Eurozone it is possible to make card payments with the same fees as national transactions. However, outside this area, commissions vary depending on the bank and type of card. Also read: Are you going to ask for your first credit card? Discover some of the precautions to be taken
best credit score
What is the credit score? The credit scoring method, or credit scoring, is based on the financial history of the person requesting the service, in order to understand the risk involved in granting you a loan. In other words, it involves an analysis that financial institutions carry out to determine whether or not the customer is a good payer. That way, the better your credit score, the better your chances of getting a loan when you need it. What is the relationship between credit scores and credit cards? Having a credit card automatically means paying the amount you are using. if you do incorrectly and miss payments, or if you are late, your score drops, which could harm your credit granting. However, when you use your credit cards correctly, you make all your payments on time, this will have a positive influence on your credit score. Thus, if in the future you need to apply for a loan, its viability will be much easier. Also read: 10 tips to settle credit card debt “fast”
Assignment of discounts
Another situation where having credit cards can pay off is attribution of discounts. There are several credit cards that, in partnership with different entities, offer percentage discounts in various areas of consumptionsuch as health, well-being, among others. These discounts vary from card to card. However, you have several options to enjoy discounts on items or services you usually use. It must, however, analyze which discounts are available at each bank, as they vary, as well as the commissions associated with the card. As much as a credit card offers you discounts, if you pay more in commissions than the discount you get, it may not be worth it. 
Earning Air Miles
Likes to travel? If yes, there are credit cards that are beneficial for you. One of the advantages of having credit cards is the air miles offer. So, you can earn air miles with your credit card purchases, which you can then exchange for travel on member airlines. For example, let’s assume that for every euro you spend, you would earn one mile. Then, you could exchange those miles for a plane trip on a particular airline, may or may not have a time limit for spending.Also read: Do you have a credit card? Find out how it works and what precautions to take
attribution of points
Another benefit of using credit cards is the accumulation of points. By accumulating points with your purchases paid for by credit card, you can later exchange them for items and/or services within various areas such as beauty, leisure, tourism, catering, fashion, among others. The points award system has benefits and a wide network of partners, however, it must analyze the offer to ensure that the commissions are not excessive and that it pays you. It should be noted that not all credit cards have associated fees. Also read: Do you know what information is included in a credit card?
Premium Cards
Many credit cards have the premium mode. In this case, we are talking about a card with much more benefits, which tend to be accompanied by higher annuities. However, for those who enjoy most of these benefits, it can be rewarding. While in the other topics we talk about isolated benefits, in the case of premium cards we are talking about the concentration of all these benefits and a few more. A premium card can offer airline miles, points and discounts system, travel insurance, fuel discounts, insurance packages with the most diverse and complete coverage, among other benefits. Therefore, it is a card with more costs, however, it can compensate when you add it all up. Remember, when choosing a credit card, as with any financial decision you make, You must ensure that you are informed so that you can choose the one that best suits your needs.Also read: Do I really have to use my credit card abroad?
A professional writer by day, a tech-nerd by night, with a love for all things money.