Credit cards offer several advantages for making the most out of regular, everyday purchases. Whether through the points, cash back or miles that some cards earn or through the increased purchasing power that a card can offer, you'll find there are plenty of reasons to have a credit card.
6 Advantages of Using Credit Cards
Let's take a look at some of the main benefits of credit card usage.
1. Earn credit card rewards
Some credit cards offer rewards options that benefit smart users. While these options differ from card to card, you may earn cash back, air miles, travel discounts or points that you can redeem for great rewards. Simply pay your balance on time and use your card wisely, and you can enjoy all the benefits credit card offers.
When it comes to rewards, Citi has you covered. For example, the Citi Rewards+ Card earns you ThankYou® Points rewards at supermarkets, gas stations and on everyday purchases.
2. Help building credit
Using a credit card responsibly can help build credit. Making timely payments and keeping your balance low are some of the factors that can help you establish a positive credit history. Focusing on debt management can help make your life easier whenever good credit is needed, such as for home or car loans.
A secured credit card may be your best option if you’re just starting to build credit. These cards often have lower minimum credit score requirements, although they typically require a security deposit as collateral.
3. Digital tools and account management
Most credit cards have digital tools to help you make consistent payments and use your card responsibly. Mobile account management alerts can let you know your card's balance anywhere you need it, and payment reminders can help you avoid falling behind on paying off your balance and accruing additional interest or late fees.
4. Fraud Protection
With Citi's $0 Liability, you don't have to pay for unauthorized purchases on your account. Security alerts and card lock allow you to take action quickly once you're notified of any questionable activity.
5. Increased purchasing power for emergencies
While credit cards work best for regular purchases you can afford, they also provide increased purchasing power that can help you in emergencies.
Car repairs and other emergencies can be paid for with credit cards if need be, and sometimes credit cards will be the primary option for these payments if you can't access other funds immediately.
If you use a credit card to cover one-time or emergency expenses, making a plan to pay off the balance in a reasonable timeframe can help you lower your utilization and pay less in interest.
6. Putting a hold on rental car or hotel room
Credit cards can also act as collateral for short-term rentals, such as rental cars or hotel rooms. This usually means a certain amount of your available credit will become inaccessible for a portion of the rental or hotel stay.
In many ways, this can be a great opportunity for travelers who may need the cash they would have used on the deposit for a hotel room or car rental. This way, a credit card can bring you added financial flexibility.
What are the benefits of using a Citi credit card?
Whether you're using the Citi Entertainment® program to buy tickets for once-in-a-lifetime experiences or you're consulting the Citi Concierge, you'll find that some Citi cards offer value in addition to rewards that can be earned by redeeming cash back, air miles or points.
Responsible credit card use
Although credit cards can help you out in a pinch, they're best used for regular purchases you can already afford. Once you make these purchases on your credit card, you should pay them off immediately to avoid paying interest.
What to look for in a credit card
Look for a credit card that fits your lifestyle. Consider the terms and conditions for the different types of cards and whether you want to earn rewards. For example, if you travel a lot, you may want to consider a travel or airline miles credit card. If you're not a frequent traveler, you may want to look at a card that rewards general spending, such as a cash back card, instead of one that offers rewards on travel purchases.
In addition, you'll want to find a card you qualify for. This means you must meet creditworthiness and income requirements and be able to pay any necessary annual fees or security deposits.
Bottom line: the advantages of credit cards
Credit cards can help you with your financial goals and needs if used responsibly. When coupled with the rewards offered by select Citi cards, you can make your purchases more rewarding in the short term while taking the time to build your credit for long-term goals and milestones.
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
