Credit cards have become a significant part of modern life and are a convenient and relatively secure way to make payments. A big part of the appeal of credit cards is that they offer users a range of rewards, discounts, bonus points and incentives to use them regularly. In addition, many people use credit cards to help manage their finances and can reap significant benefits when used responsibly.

Credit cards can help you build your credit score. Making timely payments on credit cards is one of the factors that contribute to a good credit score. As long as you make the required minimum payments each month, you should start to build a good credit history. This will enable you to borrow money from banks and other financial institutions in the future.

Another benefit of credit cards is the ability to save on interest payments. Many credit cards come with 0% APR introductory offers, which can be extremely helpful if you are planning to make a large purchase or pay off a loan. This will allow you to use your credit to make these payments in installments without having to pay any interest.

Moreover, most credit card companies offer rewards and cashback schemes. These can range from air miles to discounts on shopping and more. By using your credit card to make regular payments, you will be able to accrue points or cashback which can then be redeemed for rewards.

Finally, credit cards can also offer valuable consumer protection. Most credit card companies offer protection against fraudulent purchases, which will ensure that you are not liable for any unauthorized transactions. They also provide special services to help you in the event that your card is lost or stolen.

In conclusion, while credit cards can come with high interest rates and stringent borrowing rules, used responsibly they can prove an excellent way to build credit score, save on interest payments and redeem rewards. By failing to take advantage of these benefits, you may be missing out on a great opportunity to improve your financial wellbeing.