Why Credit Cards Are Better than Cheque Cards

These days, ensuring that you constantly have cash on you is not only inconvenient, it is not altogether safe. As a result, most people are choosing to use credit cards, cheque cards and debit cards in order to pay for their purchases. With online shopping also starting to take centre stage, these cards have becomes an everyday essential. However, the question is: which card offers you the most benefits? Most people will agree that credit cards are the most convenient and beneficial of choices. Here's why...

The obvious benefit of having a credit at your disposal

When you have a credit card, you are able to spend money now and pay it off later, giving yourself more freedom in terms of your purchases. For people with excessive spending habits, this is probably not a good thing, however, for people who have the ability to manage their cash responsibly it makes life so much easier - especially if you need to invest in more expensive items, such as furniture or new parts for your car. With cheque and debit cards, you only have the option of spending the money that actually already exists in your account.

Build up your credit history

If you ever want to apply for a loan, the very first thing that the bank will investigate is your credit history - how responsible are you when the time comes to pay what you owe? If you do not have a credit history, it is just as detrimental to your loan application as if you were to have a poor credit history. By having paid off your debts on time, you prove to the bank that you can be trusted, making it more likely for your loan application to be granted.

Enjoy loyalty rewards

With most credit cards, you will automatically be signed up to a loyalty program. The more that you swipe your card, the more rewards you will get. Also, the higher your credit card status (i.e. silver, gold, platinum etc.), the better the rewards will be and the faster you will be able to earn them.

No fees

Most banks do not charge you a fee when you use your credit card. However, when using cheque or debit cards, there is usually a specific amount payable for each transaction.

It is thus evident that credit cards will provide you with the most benefits in terms of savings and rewards. There's really only one thing left to do - visit your bank and learn how to apply for a credit card. Happy spending!