It certainly pays to own a credit card. After all, there are many benefits that come your way once you have a credit card.

Accordingly, the focus of this post is on credit card ownership. Reading through this post, you will have a good idea of all the reasons for which it makes so much sense to own a credit card.

While some reasons are quite obvious, others might surprise you! Read on to learn more about why.

Credit Period

One of the fundamental benefits that comes your way when you own a credit card is the credit period that you get.

While there is no definite period that applies in the case of all credit cards, in most cases it is at least one month and goes up to 50 days or more.

So, let’s say you incur a charge on your card today; you have at least a month to anywhere between 45 to 50 days (or even more) to pay for that. If you do so, then there is no charge levied, be it interest or any other form.

The key is always to pay on time and in full once the due date arrives. Otherwise, the fees and charges invariably add up really fast.

Cash Advance

Besides the ability to purchase goods or services simply by swiping your credit card online or offline, when you own a credit card, you have the unique ability to withdraw cash from ATMs or bank branches.

Typically, this cash component forms a part of the overall credit limit available to you on your card.

So, for instance, if you have a $3,000 credit limit on your card of which 40% is offered to you as cash advance, you can withdraw up to $1,200 as cash.

Bear in mind that your overall usage will impact the actual cash amount available to you. So, if you have pretty much maxed out your credit limit, you will not be able to avail cash advance on your card either.

Also, cash advances typically come with a few unavoidable costs. For instance, there is a cash advance fee that is levied as soon as you avail such an advance. Further, interest on cash advances is levied by the day; so, even if you repay after say 5 days of availing a cash advance, interest for those 5 days will be levied.

Yet, in a number of situations – traveling abroad, for example – cash advances on credit cards really prove handy.

Reward Points

Pretty much every credit card offers reward points on its usage. The number of points for every expense does vary from card to card, but the concept of reward points remains sacrosanct across all cards.

These points can be exchanged for air miles, a number of different goodies, and much more!

Essentially, you do nothing extra as such; simply use your credit card for regular purchases the way you always have, and be rewarded for doing so! What could be better than that?!

Remember that these reward points have an expiry date; they do not remain valid forever. So, you have to ensure that you use them within the stipulated timeframe.

In case you cannot think of a goodie to redeem them for, and do not have any travel plans on the cards either, some cards also allow points to be redeemed against cash. That way, you can possibly turn them into cash, which can be offset against the outstanding balance on your card.

Reasons to Own a Credit Card
It clearly pays off well to own a credit card, as highlighted in this post. Image Source –

Cashback – Simply Because You Own a Credit Card!

An exciting facet of credit cards that has taken off in a big way in recent times is cashback, as received on regular usage of your credit card. In other words, there is nothing special that you need to do other than to use your credit card the way you usually do.

By simply doing so, you will be rewarded with cashback on your account. Remember that this is not a universal feature; not all credit cards come with cashback benefits.

Not only that, the cashback rate varies. Some may offer 1%, others may offer 2%, while some more generous credit cards might even offer 3%! So, there is no fixed cashback rate as such.

Additionally, there are some terms and conditions that apply for availing this cashback. For instance, while some may allow the requisite amount to be offset against the payable amount on your credit card account, others might have that money deposited into your bank account.

These policies vary among credit card companies. So, on this particular ‘cashback’ aspect, you might want to check the card’s documentation or directly with the credit card company to get a complete perspective on it.

Financial Security

One aspect we often do not realize easily is that when we own a credit card, we automatically become privy to a lot of financial security.

After all, credit card ownership is akin to carrying a reasonable amount of money simply on a piece of plastic! No matter where you go and what you do, you can simply swipe your card for the items you purchase or the services that you avail.

The financial security that this brings, and indeed the peace of mind that comes with it, is absolutely priceless!

This is especially true when we consider the fact that when you own a credit card, there are additional financial perks offered by banks and credit card companies. For instance, personal insurance is often an additional value-add that is bundled into the entire “credit card package” offered to you.

This only goes on to further sweeten the deal as far as availing a credit card is concerned.

Credit Building

For the vast majority of us, credit cards are the first step towards responsible credit handling. After all, bigger credit situations such as property mortgages do not happen in many of our lives, while credit cards invariably do.

This is just the right time for us to go about building credit responsibly with the aim of having a rock-solid credit score.


Clearly, when you own a credit card, you pave the way for a number of benefits to come your way!