Although many well-known financial advisors, like Dave Ramsey, advise against credit cards, cards with rewards can be worth having.
However, there are some caveats to having a credit card. But, if you avoid some pitfalls, rewards credit cards can be a valuable asset.
Why are all reward credit cards great?
1) Free Travel
While all rewards credit card programs have benefits if you have an urge to explore, a travel rewards card can single handedly jumpstart your travel adventures.
There is a cornucopia of cards that help you earn miles with a specific airline’s card. In addition, there are hotel chains that offer point programs. Lastly, credit card rewards cards allow you to transfer these points into miles, hotel stays, or even car rentals.
2) Signing Bonus Points
In addition, Lantern by SoFi reminds consumers that some cards come with bonuses. There are specific rules for using your card during a specific time frame and charging a specific amount. This will result in a significant amount of bonus points.
3) Other Travel Perks
Some of the best travel credit card perks available could include insurance for rental cars, club access at airports, and other travel perks that help you save money.
4) Cash Back Cards
Nothing beats out cold hard cash. Therefore, cash back rewards are another popular type of rewards card. The cashback can be from 1 percent to 6 percent. There can even be an extraordinary bonus amount of cash rewards when signing up for a credit card.
There are also credit cards that give rewards points. That means the consumer can decide how to spend those points. For example, you can use those points for travel, restaurant bookings or retail gift cards.
The key to these reward programs is understanding how you spend your money. For example, some cards will only grant points when purchasing groceries, gasoline, or dining out at restaurants.
6) Credit Cards Are Safer
While Lantern by SoFi considers all credit card bonuses valuable, having a credit card is a bonus because they are safer for the consumer. For example, if a consumer uses a debit card, they may not get their money back if they do not notice the activity in time.
That charge will be taken off the account when you use a credit card. This protects the consumer. Moreover, when they use a debit card, they could lose all of their cash in their bank account. Credit cards are safer.
7) Credit Builder
Using a credit card will help you build your credit. For example, if you are only using a debit card, you may be sticking to your budget but not building your credit. It would help if you built your credit to make a significant purchase like a car or a home.
Credit card rewards are one of the best perks around. If you pay your bill in full each month, you can get valuable awards for very little money. This is the best way to make your financial goals a reality.