5 reasons why having a credit card can help you long term

Credit Card

Credit cards have gotten a bad rap in recent times. It isn’t uncommon to see many financial management tips saying that cutting off your credit card is one of the ways that you can save money or reduce debt as these cards are often blamed for impulsive purchases.

But this isn’t entirely the case. Financial experts are of the opinion that as long as the card is used wisely, these credit cards can do a lot of good.

In fact, contrary to popular belief, credit cards can be an excellent way to save up extra money, build credit scores, gain rewards or perks, and so many more. There are a host of other benefits that the cardholder can receive, such as the five following perks:

Build Credit History

Building a good credit history is very important, especially when you’re still a young professional. This is to show banks that you’re responsible enough to settle any credit bills that you have. Paying on time for both small and big charges, whether you’re using beginner credit cards or otherwise, puts you in an excellent credit standing with banks. This also helps you manage your finances better.

Should the time come that you’ll finally need to take out a car loan, a mortgage for your house, a business loan, or even a health loan, banks will more likely grant you one because of your responsible credit card ownership. Keep in mind that credit scores are taken from your financial history and credit card payments can allow you to build a good standing early on.

Gives Perks And Rewards

Another compelling reason why credit cards are beneficial in the long term is that it’s one of the easiest ways to earn some credit card points and rewards. Apart from that, some credit card companies also have a cashback system. This is a more financially-savvy option compared to paying in cash because you’re earning as you shop.

In the long run, these points do accumulate. Instead of using your credit cards for shopping, use them wisely by paying for utilities and other bills, groceries, and other necessities. Just remember also to pay it in full immediately on the next billing period. When you do this, you’re earning points for every transaction. These rewards can vary from any of the following points:

  • Store points or rewards
  • Gift certificates
  • Airline miles accumulation
  • Gas discount cards
  • Cashback debited on your account each time that you spend

When these accumulate, you’ll better appreciate the perks that you receive simply by using your credit card to pay for the necessities.

Great Emergency Source Of Funds

For people used to paying in cash, one convincing reason to get credit cards for the long term is that they can be an excellent source of emergency funds. Even if you’ve settled all your bills, it still pays to have a credit card in your purse for contingency purposes.

You’ll never know when an emergency can strike, and you likely won’t have enough time to go to the bank to get enough cash. Especially if you’ve got children, this can happen quite frequently. Trips to the hospital can happen even at the most ungodly of hours. If you don’t have enough cash on hand, how are you going to pay for the bill? This is where a credit card can then come in handy.

Here are other excellent emergency uses for your credit card in the long term:

  • Emergency medical expenses abroad, when you don’t have insurance to cover it
  • Traveling abroad, when you don’t have access yet to a local currency exchange
  • During natural disasters, wherein you need to purchase supplies, but banks have closed down
  • Emergency car repairs

Better Tracking Of Expenses

Compared to cash, credit cards can track your expenses better, provided that you’ll be using them for important transactions that fit within your budget. Credit card expenses are easier to track because they immediately show up on your transaction records. This means that at the end of every month, you’ll know where your money has been going to, which can also help with your budgeting.


Last but not least, it is important to note the convenience and safety credit cards offer. When you get used to paying with your credit card, you don’t have to worry about bringing with you hefty amounts of cash whenever you travel. This gives you more consumer protection against theft as well. It’s also easier for you to dispute a transaction, or to report a stolen card, than to recover an amount that’s already been taken from your handbag. 


Finance comprises one of the most critical areas of everyone’s life. As a credit card holder, this is something that you should understand for you to continue to be a responsible cardholder with a good credit score. When you own a credit card, you’ll want to ensure that you’re getting the most out of it. When used wisely, these cards can bring about a lot of financial good in the long run, and these five reasons are but a few. As you continue to discover the benefits that responsible credit card usage can bring, you’ll want to use it more frequently and wisely.