Rewards credit cards provide a flexible means of purchasing goods and services in department stores and other institutions that accept credit card payment. The popularity of reward credit cards has increased because consumers have become more interested in paying their bills using their credit cards. But that’s not the only reason why. Check out some other reasons why you should consider getting a rewards credit card:
Establishment and Re-establishment of Credit
Having no credit has the same negative consequences as bad credit. People with bad credit will need to establish good credit to increase their credit scores. Using your rewards credit card for your Christmas shopping allows you to carry a balance on your credit card so that you can pay your credit on time and re-establish it. However, using your card to establish credit requires discipline because you are required to promptly pay your bill in full each month.
For people with no credit, it is important to compare credit cards and their offers before applying for one. Using this card will help you establish decent credit scores provided you make timely payments to be eligible for credit limit increases. However, be careful not to keep high balances on your rewards credit card as this will negatively affect your credit score.
Credit card rewards and points
Many credit card companies compete for business by offering a wide range of incentives to entice people to obtain credit cards from their companies. Some of the most common rewards credit card incentives include cash rebates and airline miles (my fav). The more you use the rewards credit card, the more the rebates add up. In addition, credit card users may obtain points for using their credit cards. The points that accumulate on a credit card can be used to purchase various items including electronics and clothing. Using your rewards credit card for your Christmas shopping provides a more consistent means of obtaining points quickly.
Many people are busy and find it difficult to keep up with their bills. You can use your rewards credit card not just for Christmas shopping but also for making recurring payments, which involves paying for bills automatically at the end of each month. This will ensure that you clear your utilities and other bills on time.
Paying for your Christmas shopping using your rewards credit card allows you to maintain proper records of your bills and payments. Once you receive your credit card statement at the end of each month, you will have a record of the bills that were paid so you can save that information into your accounting software.
Doing your Christmas shopping using your rewards credit card is typically quicker than shopping at your local mall. Your only worry will then be the wrapping.
This is such a good post to read during the holiday season when spending is everyday!