Video: What Are the Benefits of Using a Credit Card?
Thereâ€™s more than one reason people choose their credit card to make purchases.
First, thereâ€™s fraud protection. Fraud protection provides protection in the event of unauthorized purchases and even undelivered goods and services.
The law states that cardholders who notify their card issuer of any unauthorized charges will not be responsible for more than the first $50 of charges.
For example, if you lose your credit card — or it is stolen — the maximum youâ€™ll have to pay is $50 in fraudulent charges per federal law (and most credit card companies donâ€™t even charge the $50). However, Discover has a $0 Fraud Liability Guarantee, so youâ€™re never responsible for unauthorized purchases on your Discover card.
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Another benefit is flexibility and convenience.
Credit cards give you access to the entire world of online shopping by providing a reliable form of digital payment you can use at many online stores. Also, you usually need a credit card to rent cars or book hotel rooms. Debit cards frequently canâ€™t do this for you.
Most credit cards also offer unique rewards and benefits for your loyalty. That can mean earning cash back or Miles that you can redeem. Plus many cards offer exclusive deals and offers at many of your favorite stores.
And finally, the biggest benefit of credit cards may simply be the chance to build your credit with responsible use – no debit or prepaid card can help with that.
To find out more, check out the other videos in this series in the Discover Resource Center.