Good reasons for using a credit card

If you’re sensible, credit cards make great financial sense. By paying off your balance every month, they’re cheap and convenient and a vital part of everyday life in a consumer society.

If you were ever in doubt as to how useful credit cards can be, take a look at these reasons:

Global Acceptance: Virtually all credit cards, no matter which country they’re issued are part of one of the mega global brands such as Visa or MasterCard. Present your Singapore-issued card in the United States, and you’ll hardly get a second glance as you make your payment. You might – of course – lose slightly on the currency exchange, but global acceptance of cards is a huge plus for the traveller.

Protected purchases: Making a purchase with a credit card adds an extra layer of protection against fraud. If you’re the victim of a fraudulent transaction (and this is more likely than ever before thanks to the explosion of internet shopping), your funds will be returned by the card issuer almost straight away. Banks take misuse and fraud very seriously these days, so you can be sure that any complaint will be thoroughly investigated.

On top of that, most cards come with insurance protection for cardholders. Unless you’ve read the small print (and if not, why not?), many users do not realise they’ve got all kinds of insurance benefits such as travel insurance, rental insurance, and even phone insurance. Find out what’s being offered, and ask your card issuer for more details if you need them.

Let’s not forget the other benefits that tend to come as standard these days. Most Singapore-issued cards come with some sort of sign-up bonus, and while this shouldn’t be the sole reason for getting a credit card, the temptation is often too great to resist. Other cards offer a points or frequent-flyer system, which are both worth looking into to see if they’re worth their while. While the percentages may be poor, the sign-up bonuses on these schemes may make the whole thing pay for itself on the first day.

In short, the most important part of a credit card is that it is a viable alternative to carrying money that’s accepted anywhere in the world. As long as you ensure that you use your card sensibly, the benefits of card membership outweigh the problems by a long way.

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