Spent responsibly, credit cards can be a handy financial tool.

Top 6 Benefits of Credit Cards

August 20th, 2018
By: Northern Credit Union

A credit card is like a chainsaw. Use it carefully, keep it gassed up and it can be a useful tool. But use it incorrectly and it can wreak a little of havoc, as you can imagine. The key is to monitor your spending, make your payments each month and keep your debt in check. If you follow those simple rules, credit cards  have some great benefits, including:

  1. Convenience – One of the biggest advantages of credit cards is convenience. Sometimes it’s just easier to “charge it.” Maybe you don’t have cash on hand and couldn’t be bothered to run off to a bank or ATM. With a credit card, you just swipe and go.
  2. Reap the Rewards – Some credit cards reward you for your purchases with cash back, travel points or Air Miles. Others grant you exclusive benefits and privileges, like access to airport lounges or even reserved concert tickets. Every card is different, so it’s important to choose the card that fits your lifestyle.
  3. There When You Need It – Life is unpredictable and credit cards offer a degree of security or stability. You never know what’s coming down the road. Maybe your truck breaks down and you don’t have the cash to repair it. That’s where credit cards come to the rescue—they can help tide you over during those pesky financial surprises. 
  4. Record Keeping – Ever wonder where your money went? With credit cards, you have extensive records of your spending. That makes budgeting a breeze—especially with Northern’s Personal Financial Management Tools which allow you to automatically categorize and graphically display your spending.
  5. Improve Your Credit Rating – Did you know that every time you make your credit card payment on-time, you improve your credit score? That’s why it’s so important to develop good habits with your credit card. Your credit score can come in handy when applying for a loan, a job, or renting a car or home.
  6. Purchase Protection – Often overlooked, purchase protection essentially insures goods that you purchase against theft or accidental damage for a limited time. Broke those sun-glasses you just purchased? Check to see if your credit card will cover the cost—every credit card is different, and not all offer purchase protection.

If you’re looking for a new credit card, we can help. Our new Northern Visa Credit Cards offer great features and benefits like credit back to your account for every dollar you spend, low rates and exclusive rewards. Plus, the first year’s annual fee is on us!* Click here to learn more.   

*See details.