Best Credit Cards in the US: The Things They Don’t Tell You About
Best Credit Cards in the US: The Things They Don’t Tell You About
The valedictorian used to be cash – hard cash. However, over the course of the years, the world has been opened to the emergence of cashless transactions. Some would even leave their homes without bringing cash at all, showing how broad payments could be. Technological advancements gave way to modern transactions that are seamless and convenient for consumers. Now, there are numerous forms of cashless payments varying.
Among these, debit and credit cards are the most used for it has been known through generations, even before the increase in demand for contactless payments. Although debit cards may be easier to comprehend for others, in the United States, credit cards are the leading payment method. Credit cards are like magic items you use to instantly obtain an item or avail a service that is tailored to your day-to-day needs. Among the best credit cards in the United States, of course, it’s not all rainbows and unicorns, especially on the ends of the cardholders. Together with the good stuff, you also take the bad. Every credit card has its own advantages and disadvantages. It is essential that one should first identify their priority and needs to select the best-suited card possible for them
Pros of Credit Cards You Should Take Advantage Of
1. It provides you with convenience. Whenever you need to buy something and do not have actual cash with you, fret not because your credit card is there to save the day! With just a swipe and an entering of pin number involved, you can already get that expensive purchase, pay for that fine dining and run home, or reserve your hotel accommodations online. Especially now under the pandemic where almost all transactions are settled without cash and done remotely, credit cards are a huge help.
2. Exclusive perks offered by the credit card company. Depending on the credit card company, you can get a waived annual fee on your first year, or a welcome bonus of $200, up to the most generous offer they can provide you. The bottom line is, exclusive perks are given exclusively to credit cardholders, and it varies from one type of card to another. This is the companies’ strategy of motivating you to avail and use their credit card to attend to your spending needs. On their end, it is a positive effort to make their clients feel that they are valued and treated well.
3. The security it provides. Unlike paying with cash, you do not have to carry cash with you when you have a credit card to purchase something. This is not something you will value for a small amount of purchase but comes for expensive purchases, having a credit card with you is something you will be grateful for. Additionally, credit card companies hold policies, initiatives, and efforts to protect their clients from cyberattacks, hacking, phishing, and other related financial crimes. They have the capability to freeze or temporarily shut down your account should there be a necessity to protect your money and your private information.
Cons of Credit Cards You Should Be Aware Of
1. The high-interest charges. Immediate borrowing is equal to a high-interest rate should you fail to pay for your credits. Because credit card companies allow you to check out and settle payment immediately for all your purchases in just a swipe, they have to make sure that you will completely pay to them in a timely manner. If you are the type of person who is very compliant in your due diligence to pay for your bills monthly, then this is not something you should be worried about. Interest rates exist for those credit cardholders who tend to pay way past the due date of their payables. Similar to this, higher interest rates are also given to individuals who have a higher borrowing limit. This is to compensate for the default risk associated with the borrowings.
2. Temptation for you to spend more. Associated with the immediate financial aid the credit card offers you, there could be the urging temptation for you to spend more. This is because you are not technically cashing out money at that moment when you are making the purchase. However, please be aware that you might be already digging a debt hole for yourself. Take note of your credits, be a responsible spender, and do not bury yourself in debts through the power of credit cards. Know your financial limitations because these credit companies will not save you if you put yourself in that dangerous situation. Credit card companies will only be there to save you by paying on the purchases on your behalf, but it is also for them to earn from that service they offer you.
3. Additional monthly bill for you. A credit card does not, in any way, offer you free services, pal. It does not give you a free ride to make all your purchases, reservations, or any payments at all. Every month, the credit card companies give you a bill, cumulative of all the spending you made for that month through that credit card. If you do not want to add another monthly bill for you, on top of your monthly utilities, Netflix and Spotify subscriptions, and other post-paid bills, then maybe you should think again whether getting a credit card is really for you or not. Subsequently, determine the features you would like from your credit card and start from there!
Last Reminders for You
The pros and cons elaborated above are not inclusive. Owning a credit card yourself involve a number of pros and cons, and some may even just be realized by you. At the end of the day, the crucial thing is for you to be aware of all the available information and other possible things that may happen. Before selecting a credit card to avail of, conduct comprehensive research on your prospects, consult a professional, if necessary, examine yourself if you are ready for the responsibility, and know that it is a commitment. Carefully weigh the advantages and disadvantages before making a decision. It is up to you; the power is in your hands.