5 Reasons to Use Credit Cards

One-time bonuses

There's nothing such as an initial bonus opportunity when getting a new credit card. Applicants with good credit or excellent credit may get approved for credit cards that offer bonuses. The bonus is approximately worth $150 or more in exchange for spending a certain amount, usually anything between $500 to several thousands of dollars in the first few months the account is open.

Cash back

The cashback credit card was made popular in the United States by Discover. The idea was simple. Use the credit card and get 1% of your spending rebated in the form of cashback. The concept has grown and matured with time. Today, some cards  offer 2%, 3%, or even as much as 6% cashback on selected purchases. However, such lucrative offers involve quarterly or annual spending caps. The best cashback credit cards are those that charge minimal fees and interest and offer a high rewards rate.

Rewards points

Credit cards allow cardholders to earn points per dollar in spending. Most reward credit cards offer bonus points for certain types of spending like restaurants, groceries, or gas. When your points reach a certain threshold, they can be redeemed for travel, gift cards from retail shops and restaurants, etc. via the credit card company's online rewards portal.

Your credit card reward options are almost limitless. Get a co-branded credit card that is in partnership with a hotel chain, clothing brand, or non-profit organization, and you can leverage your spending to earn valuable rewards.

Frequent-flyer miles

This perk has been around for the longest time. Cardholders usually earn miles at a rate of one mile per dollar in net purchases or sometimes one mile per two dollars spent. The lower-end cards usually have no annual fee. How valuable this reward is for you, depends on the type of airline ticket you purchase with your points or miles. Many frequent flyer cards are made more valuable by their mileage-based introductory bonuses. 

Safety

Paying with a credit card makes it easier to avoid losses from fraud and cons. Once you see a transaction that you didn’t do, you can call the bank to block the card and take appropriate action. However, it can take time for fraudulent transactions to be reversed and money restored to your account.