Credit cards represent a convenient and secure form of payment for consumers. They are an important part of everyday life, and they are effective in purchasing everyday items such as groceries, paying petty and major bills, from electricity bills, internet bills, Netflix and DSTV subscription to even planning a staycation or vacation for yourself.
New businesses and entrepreneurs are not left out because entrepreneurs looking to embark on a new business venture often find running capital hard to come by. For small businesses, credit cards represent an important financial lifeline when traditional funding sources, such as small-business loans, aren’t available. SMB Credit cards help businesses financially, and they also have a positive impact on SMB growth.
While some people have reservations with credit based on past experiences, when managed responsibly, credit cards can be an incredibly valuable asset. The aim of this post is to share top 5 reasons why you should consider getting a credit card today.
• CREDIT FOOTPRINT
If you have no credit history, getting your first credit card offers you a great opportunity to start. Credit cards allow you build your credit rating off on the right foot. With no credit rating, your options for securing any major credit line such as mortgage, car loans, business loans, etc. may be limited and even when available, they can be very expensive (i.e. very high interest rates).
In reality, without a credit footprint, the banks don’t understand you yet and they have to take precautions on the risk you may pose as a first-time credit acquirer. You can build your credit rating with discipline by using your Boon credit card regularly and making payment on-time. This gives you the opportunity to start building a credit footprint conveniently over time and helps you access bigger credit lines for capital projects such as mortgages, business loans, etc. down the line at really affordable rates.
• FUND PROTECTION AGAINST FRAUD
One of credit cards’ biggest advantages over debit cards is that your bank accounts are insulated from any direct case of fraud on your cards. Although, you are required to deactivate your card via the mobile app or request a deactivation within 24 hours if your card gets stolen. To further insulate against fraudulent practices, there are daily limits effective on your card which can be configured through the Boon card mobile app. Additionally, the Boon credit card service uses a multi-factor authentication protocol by combining your card PIN with an offline OTP to ensure that all your transactions are authorized by you.
• GLOBAL ACCEPTANCE
When you're traveling to a foreign country, merchants won't always accept your debit card—even when it has a major bank logo on it. BOON CREDIT can be used anywhere in Nigeria and is currently accepted in 185 countries including US, UK, South Africa and the UAE. Your Boon Cards can also be used for purchase and to make payment on Amazon, Apple, Netflix etc. So, you can use your credit card to pre-plan that vacation for your self, make hotel reservations, book flights, car rental services, etc.
• EMERGENCY FUNDS
A credit card provides you with instant access to money in case of an emergency. Most of us carry around the amount of cash we believe we will need for one particular day and not enough for an emergency. If you're away from home and get stranded late at night and need to get a hotel room, you don't have to worry about whether you have enough cash on hand. A credit card can provide an instant solution to paying off many unexpected expenses until you have the time to transfer the money from your bank account.
• PURCHASE HISTORY
For those who are not good at keeping track of their receipts, a credit card gives you a complete and detailed summary of your spending each month without the effort of recording every purchase as you would have to do if you paid in cash. This record can be an easy way to help you create a budget and know where your money is going. It can also be an excellent reference at tax time for charitable deductions.
In conclusion, Credit cards are best enjoyed by the disciplined, who can remain conscious of their ability to pay the monthly bill due on their card as and when due. If you already know how to use a credit card responsibly, shift as many of your purchases as possible to your Boon credit card. You pay these bills, anyway, why not build your credit rating alongside. Limit your exposure to cash withdrawals on ATMs as these can be quite expensive and prone to fraud. The combination of rewards, buyer protection, and the value you enjoy will put you ahead of those who pay with a debit card, check, or cash.
At Boon, we provide easy access to revolving credits with generous limit. We intend to launch soon, please join our waitlist and be the first to know.
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