As long as you can use a credit card responsibly, there are limitless benefits of using a credit card. They provide protection, rewards, and ease with how to get a credit card in Tanzania.
Why use credit cards?
Other payments choices like, debit cards and cash, may seem like an easy way to stay within budget. Credit cards have a reputation for attracting holders to spend money they do not have – especially when amazing offers come in the mail. But we think a best credit card is a must-have. When used responsibly, credit cards can be a remarkable for your financial well-being. Smart credit card holders can earn cash just by using their card.
Here are some of the advantages of credit card and how to get a credit card in Zambia:
They build credit history
Credit scores, taken from records of your financial activity, are important if you plan to borrow money. These scores come partially from your history and credit.
Unlike debit card use, credit card is reported to the bureaus that check scores. A track record of paying a credit card balance on time helps your score hugely. And the longer you use credit cards, the more you will build your credit history, better your score even more.
They give cash back
When you make purchases on cash back credit cards, you earn a little amount of cash back. The cash reward can be anywhere from 1 to 6 percent of your purchase total. Over time these rewards can include up to a sizable bonus.
They protect against fraud
Say your credit card is stolen or someone finds your card detail through internet. Even if the thief begins making purchases on your card right away, you would not lose cash since charges to credit cards are not withdrawn quickly.
Once you notify the card firm of the theft, they will put a hold on your card and investigate. You are not capable for any fradulent purchases made in the meantime. Federal law protections for credit card holders keep you from losing much money. The most you will potentially be liable for is fifty dollars. And if you report before a purchase is made, or if your credit card firm has a zero-liability fraud policy, you would not lose anything.
They have built-in grace periods
Essentially credit cards provide a zero-interest credit for thirty days or less. Unlike debit cards, credit cards do not need you to have the funds for a purchase quickly. There is a grace period for you to make payment arrangements.