Do Credit Cards Make You Financially Independent? Let’s Find Out!

By Nishant | May 5, 2020

Based on your spending capacity, you may or may not be able to spend on certain things. The good news? No matter what your spending capacity is, a Credit Card can definitely help improve it.

Are you looking for ways to better your financial condition and continuously trying to explore new ways to do so? To feel financially stable and free at the same time is indeed a major life goal. The cost of living keeps rising and we need to keep up.

The most sure-shot way to ensure a safe financial future is by saving. Luckily, there are a lot of ways for you to start saving. Opening a Recurring Deposit is a good start. Slowly, you can also start looking at other conventional options like Fixed Deposits. With these savings options, you can safeguard yourself in case of a financial emergency and also save up to achieve a financial goal. But do these also assure financial freedom? What about the liberty to make on-the-spot plans with your friends? All those parties, trips and what not! We all need such impromptu plans, don’t we?

Don’t worry. That’s exactly when your Credit Card can save the day. However, that doesn’t mean that we are suggesting you to use your Credit Card for anything and everything. If you use your plastic buddy right, it’s bound to give you a sense of financial independence. With a Credit Card in your pocket, you don’t always need to overthink things in case your bestie calls you for an impromptu movie plan. Without feeling too stressed, you can swipe it and even earn cashbacks and other rewards. And if you pay your entire Credit Card bill by the due date, you won’t have to pay any interest on the amount!

To strengthen our argument even further, here’s a list of reasons that prove Credit Cards mean financial freedom:

Increased Spending Capacity

Depending on our respective monthly salaries, financial commitments and miscellaneous expenditures, we all have a set spending capacity. Based on your spending capacity, you may or may not be able to spend on certain things. The good news? No matter what your spending capacity is, a Credit Card can definitely help improve it. If not too much, it can at least help you go a little beyond your means. It gives you the freedom to buy things now and the option to pay later according to your convenience. That is quite comforting especially if it’s the last week of the month when many of us are broke! Even if you make a big-ticket purchase using your Credit Card, you get the option to pay back in easy EMIs.

Rewards

Choosing the right Credit Card is quite important as your choice decides whether or not you get to earn rewards. Therefore, you must always choose your plastic mate wisely. To ensure that you make the right choice, you need to analyse your needs and choose a card that falls in line with your preferences.

For instance, if you’re a frequent flier, you must go for a travel-based Credit Card. If you’re a shopaholic, choose a card that provides amazing cashback. Basically, before signing up for just any Credit Card, consider your needs and preferences and then choose one that’s perfect for you.

Better Credit Score

Your credit history is quite important to ensure your financial stability and freedom in the future. A healthy Credit Score can help you avail some great offers on loans and Credit Cards, and also increases your chances of getting an approval. Therefore, it can help you deal with a financial emergency since you’ll have at least a couple of loan options to avail (thanks to your good Credit Score). Got the importance of a Credit Score when it comes to achieving financial freedom? Now, the good news is that getting a Credit Card can help improve your Credit Score, provided you use it efficiently enough. So, how to use it right? For starters, start paying all your bills and EMIs on time. This improves your creditworthiness and will help secure your financial future.

Additional Reading: Signs That It’s Time To Look For A New Credit Card

You Can Maintain A Proper Financial Record

If you use a Credit Card for various transactions, you can document your expenses better. This way, you can always get that monthly budget right. Since you have a clear record of where your money went, it becomes easier for you to plan your other expenses. Maintaining a budget and sticking to it are two of the most essential (and the most neglected) steps to achieving financial freedom.

Go Cashless

This is possibly the best form of freedom. Tired of carrying a loaded wallet everywhere? With a Credit Card in your pocket, you no longer need to worry about carrying bundles of cash everywhere. You get to experience the convenience of swiping your card instead of exchanging notes. If you are someone who hates to have meaningless conversations with the shopkeeper over change and how much they owe you, a Credit Card is the right choice for you. Free yourself from all those unnecessary calculations and get a plastic mate, we say.

Additional Reading: Should I Get A Credit Card Or A Personal Loan

Better Security

Making a payment using a Credit Card is any day more secure compared to a cash transaction. The electronic encryption and a secure server connection help ensure that your card details are absolutely safe and fraud-proof. Even if you lose your Credit Card, all you have to do is make a call to your card issuer. They will cancel the old card and help you get a new one.

If you want to unlock your financial freedom, all you have to do is use your Credit Card wisely. Using it recklessly, on the other hand, might ruin your chances of a happy financial future. It’s time to take the right financial decisions and see your plastic mate do wonders for you.

If you’re looking for a one-stop shop for all your financial needs, click the link below to start exploring! Stay safe!

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