3. Access digital tools and account management
Many credit cards have digital tools to help you make consistent payments and use your card responsibly. Mobile account management alerts, for instance, can let you know your credit card's balance and give you payment reminders. Those can help you pay off your balance and avoid accruing interest or late fees.
4. Get fraud protection
Credit cards have stronger fraud protection than debit cards. For example, if your credit card is stolen and the thief uses it for fraudulent charges, you’re generally only liable for up to $50. Meanwhile, you may be fully liable for those charges if they’re made using your debit card.
5. Increase your purchasing power for emergencies
While credit cards work best for regular purchases you can afford, they can also provide increased purchasing power during emergencies. Car repairs, for example, can be paid for with credit cards if need be. That may help you access the necessary funds without having to wait for loan approval.
If you use a credit card to cover one-time or emergency expenses, making a plan to pay off the balance in a reasonable timeframe can help you lower your utilization and pay less in interest.
6. Put a hold on a rental car or hotel room
When you go to a hotel or rent a car, you often need to put down a security deposit. A credit card can act as that deposit, giving you the financial flexibility you need while traveling without requiring you to carry large amounts of cash. Keep in mind that using your credit card as a security deposit usually means a certain amount of your available credit will become inaccessible for a portion of the rental or hotel stay.
7. Share expenses
Many credit cards allow you to add an authorized user to your account. That person gets their own credit card and may make purchases independently. If you have a partner or other loved one, you can add them as an authorized user on your credit card to help combine your finances.
8. Potentially skip interest on short-term borrowing
If you can pay off your balances by the payment due date each month, you generally won't have to pay interest on those purchases. That means you have some breathing room before you must repay if you want to avoid your credit card’s annual percentage rate (APR).
9. Track your credit score
Many credit cards give you access to view your credit score for free, without impacting your credit. That credit card advantage can help you make smart credit decisions and flag any credit score trends early on.
10. Receive intro offers
Some credit cards may give qualified applicants an intro bonus offer, often in exchange for spending a certain amount on that card within a certain period. If the terms of the offer align with your natural spending habits, and you know you can pay that balance off, these can provide a bit of a financial boost.
11. Access balance transfers
Balance transfer credit cards offer a way to manage and consolidate existing credit card debt. They work by allowing you to transfer balances from multiple cards onto a single new card. A key feature of many balance transfer offers is a low introductory APR (Annual Percentage Rate) for a set period, often ranging from 10 to 21 months. This means you'll pay a reduced interest rate on your transferred balance during that time.
It's important to note that balance transfers typically come with a fee, usually a percentage of the amount transferred (e.g., 3% to 5%). When used strategically, balance transfer cards can be a valuable tool for paying down debt more efficiently by minimizing interest charges during the introductory period. However, it's crucial to calculate the potential savings and fees to ensure it's the right move for your financial situation. After the introductory period ends, the regular APR will apply, which is typically higher. Therefore, a solid plan to pay off the balance within the low APR timeframe is essential.
What are the benefits of using a Citi credit card?
Citi credit cards can offer a wide array of benefits. When it comes to rewards, Citi has you covered. For example, certain cards may let you earn ThankYou® Points on qualifying purchases, while others may allow you to earn cash back on everyday purchases. Other Citi credit card benefits you may find include:
- Citi provides access to your FICO score both online and via the mobile app. You can also see up to a 6-month history of your credit score.
- The Citi Entertainment® program allows you to buy tickets for once-in-a-lifetime experiences.
- Citi Concierge can help you manage your shopping, entertainment, gift-giving and everyday needs.
- With Citi's $0 Liability for fraudulent charges, you don't have to pay for unauthorized purchases on qualified accounts.
- Citi security alerts and card lock allow you to move quickly if there's any questionable activity on your credit card.
Interested in a Citi credit card? Use our credit card tool to find an option that works for you.
Maximize advantages: what to look for in a credit card
The best credit card for you depends on several factors, such as:
- Qualification requirements: Credit cards have different qualification requirements that may make it harder or easier for you to get approved. Using credit card pre-qualification can help you find credit cards that may be more likely to accept your application without harming your credit score.
- Spending habits: If you want to access an intro offer, you should consider whether you can easily meet the requirements and still pay off any balance you accrue. That way, you may avoid interest charges, which may negatively affect the value of the offer.
- Lifestyle: Some credit card rewards programs may be more valuable given your lifestyle than others. For example, if you travel a lot, you may want to consider a travel or airline miles credit card. Others may look for a card that offers rewards on everyday purchases.
Once you get a new credit card, responsible habits, like keeping up with payments and paying off your balance each month, can help you avoid fees and negative credit impacts. That way, you can focus on enjoying your credit card's benefits.
Frequently asked questions
What are the benefits of a credit card?
Credit card advantages can range from building credit and accessing money during emergencies to earning rewards and helping to secure a hotel room. The benefits can vary depending on the credit card you choose.
What credit card gives the best benefits?
It depends on what you’re looking for. In general, considering factors like your lifestyle, spending habits and credit card qualification requirements can help you find a credit card that meets your needs.
What is the advantage of using a credit card instead of a debit card?
In general, you may be liable for all fraudulent charges made with a debit card, while credit cards may limit your liability to $50. Select Citi credit cards take this a step further, offering $0 liability for fraudulent charges.
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
