Credit Card

There are many advantages to owning a credit card. I know many people will tell you that you don’t need one but the benefits of owning a credit card outweigh its disadvantages.

In this article, I will be writing about the value you can get by owning and using a credit card, particularly if you love to travel. But first, let’s start with a short definition.

What is a Credit Card?

A credit card is a chipped bank card given to you by your bank. With a credit card, you can make purchases or pay for different services on credit. This means you don’t necessarily need to have funds in your linked bank account at the time you use the credit card.

Banks have different criteria that a customer must meet to be eligible for a credit card. Customers are assessed based on their credit score. This is why you should maintain a good credit rating.

Many people prefer to use credit cards because they are convenient. This is true, and if you are a frequent traveler, I know some fantastic benefits you can get by using a credit card.

Having a credit card when you travel can save you much stress. And it is a reliable source of funds if you have an emergency. However, the following benefits are attainable when you use your credit card often;

Cash rebates

Many banks give holders of their credit cards cash rebate when they make purchases with the cards. This is done to encourage more customers to use their credit cards often. For every transaction done with a credit card, the merchants pay a fee to your bank for the interchange service. A percentage of this fee is shared with you as cash rebates. This means you paid a lower price for the product because you used a credit card instead of cash.

Get more value from travel miles

Many banks offer customers an opportunity to increase their travel miles when they use credit cards. This is how it works; if you traveled a total distance of 25,000 miles, for instance, your bank may offer you an additional value of 1.3 multiplied by the total travel miles you have accumulated. The calculation is done for every dollar you spend using the credit card. Travel miles can be used to make purchases from stores affiliated with the airline. So it will be great if you have more travel miles.

Credit Card rewards

It is common to find on-going reward programs to encourage owners of credit cards to use them. Rewards are offered as discounts on purchases at specific stores or brand outlets.

There’s so much to gain when you use credit cards. However, I have identified the pros and cons of having a credit card to help you make a decision.


  • Credit card owners enjoy cash rebates, rewards, and many benefits
  • Credit cards allow you to buy now and pay later
  • Your funds are protected if you lose the credit card
  • Access to funds during emergencies
  • No need to carry a bulky wallet filled with cash if you have a credit card


  • Credit cards fees are high
  • Impulse buying- purchasing things you don’t really need
  • Indebtedness can ruin your credit score when you buy very expensive things with a credit card

In conclusion, I always advise everyone to carefully read the terms and conditions before accepting a credit card. Please ask for an explanation if you do not understand any part of the agreement offered by your bank.

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