Experts spend time discouraging the use of credit cards, and for good reasons. Many people do not know how to manage them, which leads to mounting balances, added fees, and in serious cases bankruptcy. That outcome becomes more likely when spending rises without a plan to repay.
Why Using a Mastercard for Transactions is a Good Idea
Contrary to common belief, if you can use your Mastercard credit card responsibly, you are far better off paying with a credit card as opposed to a debit card. The main benefit of using a Mastercard is that it allows you to build credit. Building and maintaining good credit is essential for things like buying a car, renting a house, or applying for all sorts of loans. Often times, with a great credit score, you will receive lower interest rates as well.
Without any credit history at all, lenders won’t know whether or not they can trust you to be financially responsible and you may get turned down. Using a credit card, responsibly, is a great way to prove you can be trusted financially. Further, Mastercard offers a variety of other advantageous benefits besides just helping you build a credit history.
If you still have doubts about Mastercard credit cards or want to learn more, keep going as we discuss how Mastercard credit cards come out on top. The next sections explain the main benefits in plain terms so the comparison is clear.
Signup Bonus
Who doesn’t like a “welcome aboard incentive”? If you have good credit, it will be easy to get approved for a MasterCard credit card that comes with bonuses ranging from $50 to $250 and even more. Other cards “thank“ new applicants by bestowing lots of rewards points, which can be redeemed for various things. In contrast, standard debit cards often come with small or zero rewards.
Enjoy Points and Rewards
Rewards run on a points system where you can earn up to five points per dollar spent, depending on the issuer and category. Many cards also add a three-month promotional period that boosts points on spending in areas such as transport or restaurants to help you start earning faster.
After reaching a certain threshold, you can redeem these points at some stores for gifts. You can even buy items with these rewards from certain stores. The beauty with these rewards is that they are almost endless.
Enjoy Unlimited Cash Back
Discover in the United States first popularized this idea and it was pretty simple: when you use your card, you will get 1% of your balance refunded. It doesn’t matter where you bought it or what you bought. This concept today has matured, and some Mastercards offer 2%, 3%, and even as much as 6% back on purchases.
Miles for Frequent Flyers
Back in the day, American Airlines, followed by United Airlines and US Airways, offered miles to frequent flyers through an affiliated credit card. But now, almost all airlines have adopted this concept, and they have at least one credit card available.
It is usually calculated as one mile per dollar spent or one mile per two dollars spent. You get to fully enjoy these points depending on which airline ticket you purchase. These miles rack up as you go about your daily life and then before you know it, you have earned a round trip ticket for your next vacation!
Guaranteed Safety
Having a MasterCard credit card ensures you avoid fraud losses, unlike debit cards where, when a thief uses the card, money instantly goes off. If there are fraudulent transactions with your card, you don’t lose any money.
You only have to notify your card company, and you will not pay for any transactions you did not take part in as you wait for the company to resolve the issues.
Conclusion
To enjoy your Mastercard credit card, you have to be disciplined and ensure you pay your monthly bills in full and on time. Call your card issuer in case you do not understand the terms and conditions of your Mastercard credit card.
Using a Mastercard not only helps you build credit, but also provides you with some amazing rewards just by spending like you normally do.
Disclaimer: All credit products carry risk. Be aware of these risks by reading the associated terms and conditions.
