Credit Line

One key limitation of debit cards compared to credit cards is that many come with a 24-hour spending cap, which can prevent you from making larger purchases right when you need to. Credit cards, however, offer greater spending power since you don’t need the full amount of funds available upfront.

Credit cards can also provide you with peace of mind in the face of an emergency. According to Bankrate, nearly a quarter of Americans have no emergency savings. If you do not have an emergency savings account, paying for an unexpected emergency room stay or major car repair out of pocket may be a significant financial strain. A credit card can help you cover these costs immediately and give you the flexibility to pay them off over time, easing the stress of the situation.

Of course, responsible use is key. Be sure to choose a credit card with a reasonable interest rate, keep track of your spending, and make payments on time. While it’s easy to swipe during a shopping spree, missing payments can lead to costly interest charges and negatively impact your credit score.

Credit Building

If you can prove you are financially responsible and know how to use your credit card properly, you can build up your credit score and credit history. Both are vital whether you are looking to apply for a mortgage, auto loan, or any other type of financing in the future. The higher your score, the lower your interest rate. This equals more savings!

Security

With scammers using increasingly sophisticated technology to steal personal information, having stronger security features has never been more important. The Launch CU credit card comes equipped with contactless payments through the use of Near Field Communication (NFC) technology. In order to perform a transaction, you must be within inches of a card reader, so you can’t accidentally make a payment.

Even more importantly, every contactless payment uses tokenization, one of the most secure encryption methods available. Instead of transmitting your actual card details, the system generates a unique, one-time code for each transaction. This makes it nearly impossible for hackers to duplicate your information, offering a much higher level of security compared to traditional magnetic stripe cards. The result? Faster, more convenient payments with significantly reduced fraud risk.

Convenience

Forget the hassle of writing checks or counting out change at the register – credit cards let you pay in seconds. They also make online shopping simple, allowing you to complete transactions quickly and securely from the comfort of your home.

Many credit cards also include built-in security features and fraud protection for added peace of mind. Just remember to take precautions by only making purchases on trusted websites, which helps further reduce the risk of security breaches.

Traveling

Often, when we travel to other countries one of the steps we must take is to exchange our currency. Several credit cards are accepted overseas, which makes purchases much more convenient. However, you must be aware of exchange rates and minor currency conversion fees that may apply.

Less Cash

More and more people are moving away from cash when making purchases, and you may find yourself doing the same. While it’s always smart to keep a little cash on hand for unexpected situations, carrying too much can put you at risk. Cash can easily be lost or stolen, and once it’s gone, it’s nearly impossible to recover.

Credit cards, on the other hand, offer far greater protection. If your card is lost or stolen, it can be canceled immediately, and fraudulent charges can often be reversed, something cash can’t provide.