Credit cards can come with many perks, such as access to reward programs and complimentary insurance packages. Anyway, they can be expensive if you pick the wrong one and do not make your repayments on time.
If you are thinking about how to get a credit card in Tanzania, or using other types of credit such as buy now, it is vital to consider both the potential benefits and the risk involved.
Here are some of the advantages of credit card and how to get a credit card in Rwanda:
Credit cards have changed the shopping experience for cardholders. The card make shopping simple. One can make huge purchases for home appliances and needs using a credit card without having to take a hit on their monthly budget. Credit cards let customers to purchase products on low-cost EMIs. Credit cards run on the buy now, pay later principle which works well for salaried individuals with fixed monthly salaries.
Credit cards are also a best way of improving your credit score. The credit score is a 3 digit score calculated based on your credits and how well you pay them back. Most financial and bank instructions take into account an individual credit score while deciding whether the individual is eligible for a credit. If you have a credit card and you pay your credit on time, it is likely to better your credit score.
In case of a medical emergency for you or your family, the credit card comes in handy. You need not worry about arranging funds for medical bills as you can pay using credit cards.
Earn points and rewards
Some types of cards permit you to earn credit card rewards such as frequent flyer or other kinds of points, or cashback on eligible purchases. For example, with a continue flyer credit card, you will typically earn airline points for each dollars you pay using the card.
Keep in mind that rewards credit cards generally come with a top interest rate and yearly fee than non-rewards cards.
Take benefit of interest-free days
Credit cards generally come with an interest-free period on purchases. This means that if you have one of these cards, you would not have to pay interest on purchases if you pay back your ending balance in full within this period. Anyway, if you do not pay off your closing balance by the due date, you will lose the interest-free period and interest will be charged on your due purchase balance.
Making big purchases
By the same token as the above, making big purchases like buying holidays or white goods is much easier when you have a credit card and here is how to get a credit card in Zambia.