Why Credit Cards Mean Financial Freedom

By BankBazaar | July 19, 2017

Why-Credit-Cards-Mean-Financial-Freedom

How often have you found yourself looking for ways to better your financial condition and exploring new ways to do so? Quite often, isn’t it? We get it because we all feel the same. With the cost of living rising exponentially every day, all of us need ways to feel financially more stable and free at the same time.

Savings are great and there are a lot of ways to do so. You can start with a Recurring Deposit and slowly look at other conventional options like Fixed Deposits. All these are good to ensure financial stability to help you out in case of a financial emergency or to meet a financial goal. But what about your freedom? What about the liberty to make on-the-spot plans with your friends? All those parties, trips and what not!

Additional Reading: Are You Prepared For a Financial Emergency?

That’s when your plastic buddy can come to the rescue. Although we don’t suggest using your Credit Card for anything and everything, we can’t deny that it gives you a sense of financial independence. If there’s a sudden plan to go watch a movie, you don’t always need to overthink things. For a change, you can let your plastic mate make things easy for you. 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!

Additional Reading: Understanding The Interest-Free Period On Your Credit Card

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

You Can Spend Some More

We all have a set spending capacity. It directly depends on our monthly salary, other financial commitments and miscellaneous things. Your spending capacity determines whether or not you can spend on certain things. No matter what your spending capacity is, a Credit Card can definitely help improve it. If not manifold times, it can at least help you go a little beyond your means. You get the freedom to buy something now and pay later. 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.

You Can Earn Rewards

Choosing the right Credit Card is quite important. Depending on the choice, you can earn some pretty great rewards or none at all. It’s all in that plastic mate in your wallet. Therefore, it’s always advised that you choose your card wisely. You must analyse your needs and choose a card that falls in line with your preferences.

If you’re a frequent flier, you must go for an Airline Credit Card. If you love to shop, 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.

You Can Improve Your Credit Score

The status of 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 increase your chances of getting an approval. Therefore, you’ll be able to deal with a financial emergency better since you’ll have at least a couple of loan options to avail of (thanks to your good Credit Score). So now you know the importance of a Credit Score when it comes to achieving financial freedom. The good news is that getting a Credit Card can help improve your Credit Score, provided you use it efficiently enough. The right usage includes paying all your bills and EMIs on time. This improves your creditworthiness and will help secure your financial future.

So now you know the importance of a Credit Score when it comes to achieving financial freedom. The good news is that getting a Credit Card can help improve your Credit Score, provided you use it efficiently enough. The right usage includes paying all your bills and EMIs on time. This improves your creditworthiness and will help secure your financial future.

You Can Maintain A Proper Financial Record

Using your Credit Card for various transactions can help you document your expenses better. It can prove to be a great way to get your budget right. As you know exactly 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 steps to achieving financial freedom.

You Get Freedom From Cash

This is possibly the best form of freedom. 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. Especially if you are someone who hates to do all those calculations to see how much change the shopkeeper owes 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: Banks To Charge For Cash Transactions

You Get Better Security

The process of paying with a Credit Card is more secure compared to opting for 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 plastic buddy, 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 use your Credit Card wisely, it can turn out to be your key to financial freedom. Using it recklessly, on the other hand, might ruin your chances of a happy financial future. Take the right financial decisions and see your plastic mate doing wonders for you.

Psst…looking for the right plastic buddy? We can help.

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Category: Credit Cards Money Management

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