Most of the United States
population has been using credit cards. It is rare to find anyone who does not
have credit card nowadays. Other developing countries are also adapting this
trend and have started carrying cards for purchase, paying debts or doing
monetary transactions. Credit card terminals are rampantly spreading even in
convenience stores and buses cross the globe.
Singapore, Japan and Seoul,
South Korea are some of the biggest markets of credit card because of their
outstanding financial capabilities. Surprisingly, cities of developing nations
are also competing for the most used credit cards. According to reviews, Jakarta, Indonesia and Kuala
Lumpur, Malaysia are included to the top ten places in South East Asia to have
an ample amount of purchases using credit cards.
With the trend continuously
growing, Axis Capital Business Funding, a company which provides credit loans
to small business owners across the globe has released their top reasons why
credit card is slowly replacing cash:
1. Helps in Budgeting
For simple homemakers or
frugal individuals who keep track of their expenses, credit card can help
organize their finances. You can monitor your purchases and financial
transactions and also ask for monthly balance through the receipts.
2. Helps in Credit History
Credit scores and reports are
vital when you would have to loan one day. Your credit history which shows if
you have spent and surpassed your credit limit and the frequency of using your
credit card can help boost your credit score. It can also build a solid credit
history which can tell lenders that you can be trusted.
3. Helps in Saving Money
When you pay your debts on
time, it can boost your credit score. When you have a good credit score, you
can have a discount in mortgages, lower interest rate, car purchases etcetera
4. Helps in Availing Rewards
When you are using your credit
card often, it can gain you rewards and freebies. There can be points or other promotions
that your credit card provider may be teaming up with, perhaps a free round-trip
ticket or free items when you purchase. Just make sure you don’t give your
confidential information for the redemption of your rewards. It can also be a
scam used to lure you in.
5. Helps you Purchase Fast
Credit cards are now accepted everywhere
compared to cash that you have to exchange with local currency if you are
traveling abroad. Moreover, if you are fond of purchasing online, having a
credit card can also keep your transaction hassle free.
