A credit card could be defined as a financial product that modern-day individuals use for daily purchases like groceries, gas, and other products and services. It could also contribute to big-ticket items like travel packages, televisions, computers, and jewelry because funds for them are not always at our disposal. To know about the benefits of credit cards, please go through the following discussion.
Credit Cards Associated With Environmental Charities
Credit cards serving green causes or charities have attained widespread popularity all across the globe. They are issued by the banks that believe in the existence of environmental responsibility. They provide the customers an opportunity to donate to eco-friendly charitable institutions and not airline miles and cash backs.
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AMEX Red
Red is a commercial project that procures money for global funds. The organizations that volunteer to make specialized Red products donate up to half of their profits. AMEX Red credit cards simplify ethical spending as American Express donates to fund each time the shoppers pay with their credit card.
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Working Assets
The travelers wishing to protect the environment by shopping must use a progressive credit card. Working Assets tend to donate at least 10% to the environment and a wide range of other charities each time a cardholder uses them for making a purchase. It has generated approximately $67 million for donations since 1985.
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Green America
Green America is a non-profit organization that aims to establish an environmentally sustainable society. It supports green businesses, makes trading solutions fair, and advances the cause of cleaner energy. Green America offers multiple credit card services to community banks.
Credit Cards Help Women Get Home Loans
With women achieving financial wellness at a considerable pace, a major portion of them have become borrowers for home loans. To know how enabling women to access home loans can be useful, please continue reading.
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Negligible Rates of Interest
Most of the lenders assure lowinterest rates for the women borrowers. A low-interest rate can positively affect the monthly payments over the tenure. As a home loan can extend between fifteen to twenty-five years, a low-interest rate ensures enough savings, affordability, and comfortable and stress-free repayments.
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Tax Advantages
As a woman buyer, you will be able to claim tax advantages and enjoy tax deductions when repaying the principal amount. If you are a co-owner, you can assert the tax deductions on your income without any hassle.
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Lack of Stamp Duty Charges
Stamp duty is a necessary fee. To register the purchased property in the governmental records, you must pay this charge. The women borrowers have to pay only 4% of property value while the men have to pay 6%. Some places reduce the charge to even up to 2%.
Other Benefits of Credit Cards
- Increase in credit score
- Increase in purchasing power
- Chance to build credit
- Gather reward points
- Protection against fraud
- Zero foreign transaction charges
- Not linked to savings or checking account
Like almost all financial products, the benefits of a credit card can be enjoyed best when you agree to be responsible. It is crucial for anyone who plans on opening a line of credit to chalk down how they will make the payments. A general rule of thumb will be to not use credit cards for unaffordable products or impulse purchases.