A credit card is an extremely convenient financial option for you to use for everyday purchases and big-ticket items. Several people apply for US bank credit card to make both small and large payments. Around 86% of Americans use cards for different purchases.
If you have recently moved to the US, you must be wondering whether to opt for a credit card. While you can always use cash for payments, credit cards will be an extremely advantageous financial tool. Let’s understand why having a credit card in the US is so beneficial.
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High Convenience
Credit cards are primarily preferred because of their convenience. Transactions using credit cards are fast and easy. Moreover, you don’t even have to pay the money instantly.
You will have to pay your full monthly statement before the due date. It is highly beneficial for situations when you need to make a purchase immediately, but you won’t be paid until another five days. Most credit cards don’t charge you an interest rate for new purchases when you pay the monthly statements on time.
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Attractive Rewards
Several credit card issuers offer attractive rewards to users. The rewards include cashback offers, travel points, and other perks. Around 68% of millennials use credit cards primarily because of the huge rewards.
Nowadays, you can get up to 6% cashback for making payments using your credit cards. The cashback offers are available on selected purchases and come with yearly or quarterly spending caps. But still, the cashback feature of credit cards attracts a wide range of users.
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One-Time Bonuses
The initial bonus for getting a new credit card fascinates several users. Applicants with an excellent or good credit score might qualify for bonuses of $150 or more. They will have to agree to spend a certain amount during the first few months of opening the account to get this bonus.
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Safety
Credit card payments are beneficial for avoiding losses. If your debit card gets used in a fraudulent transaction, your money will immediately be missing from your account. If you have scheduled online payments, they might not be paid due to insufficient balance.
When you fail to pay your bills on time, it directly affects your credit score. Moreover, fraudulent transactions also need time to be reversed. You will have to wait till your bank verifies the matter.
But your money won’t be lost immediately if your credit card is used for fraud. Once you notify your credit card company about the matter, you don’t have to pay for transactions you didn’t make.
The credit card company will resolve the matter, and some credit card companies also offer zero liability coverage for purchases you didn’t authorize.
Closing Thoughts
A credit card is extremely beneficial if you want to build or improve your credit score. If you are a responsible credit card user, the credit card companies will submit your payment activity record to credit bureaus.
Depositing funds to get a credit card can also help you build your credit history. A high credit score will help you qualify for large loans or unsecured cards. Zolve is a digital banking platform that offers U.S. and international customers an operational account and high-limit credit card that can be applied for online.
Zolve offerings provide customers with perks like easy approvals, no application fee and a great online set-up – making it easier than ever to manage your finances from anywhere in the world.
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