Most of the United States population has been using credit cards. It is rare to find anyone who does not have credit card nowadays. Other developing countries are also adapting this trend and have started carrying cards for purchase, paying debts or doing monetary transactions. Credit card terminals are rampantly spreading even in convenience stores and buses cross the globe.
Singapore, Japan and Seoul, South Korea are some of the biggest markets of credit card because of their outstanding financial capabilities. Surprisingly, cities of developing nations are also competing for the most used credit cards. According to reviews, Jakarta, Indonesia and Kuala Lumpur, Malaysia are included to the top ten places in South East Asia to have an ample amount of purchases using credit cards.
With the trend continuously growing, Axis Capital Business Funding, a company which provides credit loans to small business owners across the globe has released their top reasons why credit card is slowly replacing cash:
1. Helps in Budgeting
For simple homemakers or frugal individuals who keep track of their expenses, credit card can help organize their finances. You can monitor your purchases and financial transactions and also ask for monthly balance through the receipts.
2. Helps in Credit History
Credit scores and reports are vital when you would have to loan one day. Your credit history which shows if you have spent and surpassed your credit limit and the frequency of using your credit card can help boost your credit score. It can also build a solid credit history which can tell lenders that you can be trusted.
3. Helps in Saving Money
When you pay your debts on time, it can boost your credit score. When you have a good credit score, you can have a discount in mortgages, lower interest rate, car purchases etcetera
4. Helps in Availing Rewards
When you are using your credit card often, it can gain you rewards and freebies. There can be points or other promotions that your credit card provider may be teaming up with, perhaps a free round-trip ticket or free items when you purchase. Just make sure you don’t give your confidential information for the redemption of your rewards. It can also be a scam used to lure you in.
5. Helps you Purchase Fast
Credit cards are now accepted everywhere compared to cash that you have to exchange with local currency if you are traveling abroad. Moreover, if you are fond of purchasing online, having a credit card can also keep your transaction hassle free.