The use of credit card has benefits and perks to cardholders.
The use of credit cards has benefits and perks for cardholders. One of its advantages is that it allows you to make current purchases and pay for them later. In the Philippines, having a credit card is now more of a necessity. Many Filipinos are becoming more comfortable with cashless transactions. In fact, according to the Bangko Sentral ng Pilipinas (BSP), Filipinos today own an average of 2.3 credit cards, with 11.3 million cards in force as of the end of 2022.
Major Benefits of Credit Card Holders
Typically, there are many advantages or benefits given to credit card holders by their respective banks or companies. Here are the top three:
- Convenient and flexible access to credit. The use of a card now and pay later can be very helpful to the cash flow of card users. Some items can be charged to deferred arrangements or those in need of cash transactions. Some creditors even offered a longer settlement. Whichever is the case, payback deals or options make it possible for users to strategize their needs and purchases.
- Building of a credit line. This is very important for those with growing needs and targets. Banks usually assess credit history and repayments to gauge the creditworthiness of possible loan applicants. Take note that there is a bigger chance that your credit limit will be increased if your card usage and payments are active. Or, your record can help with the potential approval of future loans and other similar applications.
- Withdraw cash from your credit card. Many credit card companies allow you to convert your existing credit line into cash. This will help you get that cash easily with no fuss in times of emergencies. The good part is that you don’t have to submit documents and wait for the company’s approval.
Perks of Credit Card Holders
The perks of a credit card refer to those incentives on top of the benefits provided or the extra things that can be received as additional gifts or freebies.
- Rewards through bonus points. Most banks allocate points for purchases using credit cards. These points can be accumulated and utilized to buy the same or other products. Strategic users will likely use their credit cards in buying their household and personal needs to earn more points. Of course, you need to pay for all items acquired on time to avoid interest and charges.
- Rebates or cash backs. Some credit cards offer cash back or refund as a form of a discount if the amount due is paid on or before the scheduled payment date. Card users will be enticed and encouraged to pay their dues with this incentive.
- Free insurance. Insurance coverage entails additional costs for regular borrowers as a requirement for applications. This is usually given free to credit card holders.
There are other benefits and perks which may be offered by credit companies. The list given is the common items. If you are already an existing credit card user, you can maximize your benefits by being aware of the said advantages and perks. If you are still a non-holder, you can try to explore it first and choose the one which would be more beneficial to you. Each bank/company has a line of not just one but many types of credit card to suit their client’s needs. Aside from the benefits and perks provided, check also the charges that go with it.