Why use credit cards when other payment options, like debit cards and cash, are available that can help you stay within your budget? We all know that credit cards encourage users to spend money they don’t have—especially when enticing offers are available in the mail.
However, when used responsibly, credit cards are fantastic for your financial well-being. Smart Mastercard holders can earn money just by using their cards!
Today, let’s talk about 5 reasons among others why a credit card is a must-have for Canadians! Read on.
Build your credit history
Credit scores, taken from records of your financial activity, are essential should you need a loan. The scores financial institutions take into consideration come partially from your card history.
A chronicle of paying your credit card balance on time helps your score immensely. and also the longer you employ credit cards, the more you’ll build your credit history, improving your score even more.
Unlike positive identification use, MasterCard use is reported to the bureaus that monitor scores. An account of paying a MasterCard balance on time helps your score immensely and also the longer you employ credit cards, the more you’ll build your credit history, improving your score even more.
Benefit from cash back offers
Discover made the cashback mastercard popular and their Discover it® Cash Back program remains one among the best.
When you make purchases on cashback credit cards, you earn a little amount as a form of cash back rewards. The cash reward is often anywhere from one to six percent of your purchase total. Over time these rewards can add up to a large bonus.
Multiple rewards programs
There are almost as many rewards programs as there are cards. The trick is to seek out a rewards program that matches with spending habits you have already got, or partners with a retailer you already like.
Rewards programs can include, but aren’t limited to:
- Points systems. You earn points supported by what proportion you spend.
- Frequent flyer cards. You rack up airline miles each time you fly, which you’ll redeem for discounts on future flights. These cards may offer lucrative sign-up mileage bonuses.
- Travel rewards cards that provide “credit card miles”—slightly different from frequent flyer miles, but still giving rewards for travel.
- Rewards in common spending categories like restaurant dining, gas, or groceries