A credit card is a fundamental financial tool that everyone needs to have in their wallet or purse. They simply offer too many benefits when used responsibly on a regular basis. Here are a few of the best perks you can expect to get from a credit card.

Improve Your Credit

Credit card activity is reported to all three main credit bureaus. Using the card the right way will let you quickly improve your credit score. The best way to do this is by making on-time payments and keeping the balance under half of your available credit limit. These are the two most important factors in a credit report. Keeping the card open for years will also help increase your credit score.

Cash Back Rewards

A large number of credit cards offer a reward system to their customers. This allows you to earn cash for just using the card. A typical reward system sees you earn one percent back on all of your purchases. Some cards even offer more money back for shopping at certain stores every month. You can opt to put this money towards the balance of your card or get it deposited directly into the bank.

Increased Purchasing Power

One of the most overlooked credit card advantages is the ability to increase your purchasing power. There may come a time when you need to make an expensive emergency purchase when your bank account has a low balance. Using a credit card lets you make this purchase without depleting your bank account and savings. The credit card essentially lets you gradually pay off the big purchase in installment payments, which is far easier to handle when on a tight budget.

Fraud Safety

Keeping your private information safe is extremely important when making purchases today. Every major credit card has built-in encryption that helps protect your information when shopping in a store. If your card information happens to get into the wrong hands, then you will still be protected. The major credit card companies have a zero-liability policy when it comes to fraudulent purchases. Your credit balance will quickly be restored back to normal after the fraud is reported. Banks offer the same policy for debit cards, but it can often take weeks to get your stolen money back. Also, as the experts at SoFi say, ”compared to debit cards, credit card security tends to be much more robust and the protections against fraud are more consumer-friendly.”

Accepted Everywhere

The days of credit cards only being accepted in certain locations are officially over. Shopping is an absolute breeze when using a credit card. This even applies when shopping abroad. Visa, Mastercard and Discover credit cards are currently accepted in more than 200 different countries around the world. The purchase will automatically be converted into US dollars, so you will never have to worry about visiting a currency exchange again.

You will receive a number of important perks, whether you have perfect credit or almost no credit at all. These benefits are not available from any other source, so there is absolutely no reason to avoid getting a credit card.