If you’re looking for investment advice, you’ve probably heard that credit cards are bad. The article doesn’t debate the merits of that statement; instead, it points out that having a credit card can provide some genuine benefits. Here are some reasons why investing with a credit card might be right for your situation:
Earn rewards on your investments
Credit cards are a great option if you’re interested in earning rewards on your investments. Rewards credit cards can help you earn cash back, points, or miles on every purchase. Some rewards programs even have no annual fees or foreign transaction fees. So if you’re looking for an easy way to save money on travel while investing, take a look at some of these top reward credit cards below!
Get annual perks
Credit card companies always try to get you to sign up for their cards. They want your business, and the best way they can do that is by offering you great perks. These perks include cash back, travel rewards, free hotel stays, airline points and car rentals.
These companies offer great benefits because they’re all competing, so they need to make sure their customers choose them over another company’s product. So, for example, if you have one credit card from a specific company, chances are there will be another card from another that offers better benefits or lower interest rates on your purchases. So compare what each one offers before signing up for one in particular!
Increase transaction security
Many people think credit cards are riskier than debit cards, but this is different. Credit cards offer better fraud protection because of their higher dollar limits. So, for example, if you use a stolen or compromised debit card, there’s often only one way to get that money back if you go through an arduous process with your bank.
Credit cards, however, can be cancelled within minutes if lost or stolen. This means you won’t have to worry about fraudulent charges appearing on your statements—and if they do show up, you’ll be able to dispute them immediately and start the refund process immediately.
Skip foreign-transaction fees
When travelling abroad, a credit card can be an essential tool to help you avoid foreign transaction fees. For example, suppose you’re planning a trip abroad but already have a full plate of financial commitments. In that case, it may be tempting to put off opening up another bank account in the U.S. or even getting your hands on some local currency before you leave. However, if your long-term goal is saving money rather than spending it, there’s no reason not to take advantage of the ease and convenience of using a credit card during your travels.
According to financial advisors at SoFi, “Many credit cards offer an initial welcome offer where you get a bonus if you meet certain spending or other criteria in the first few months of having the card.”
Investing with a credit card is a great way to get more out of your money. If you’re looking for an investment vehicle to make your money work harder, look no further than this option! With its many benefits, including rewards and sign-up bonuses, investing with a credit card can be beneficial in more ways than one.
