By Jenna Evans
It is often very tempting to go mad when you first get a credit card, as you don’t really think about it as real money. That is until the bill arrives.
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| Keep safe with an emergency credit card |
It is often very tempting to go mad when you first get a credit card, as you don’t really think about it as real money. That is until the bill arrives.
Not everyone will be
accepted for a credit card, but there are a variety of options to
choose from and most people will be able to find one to suit their
circumstances. Although credit cards can be risky commodities, if
used correctly they can actually be beneficial.
Convenience
A credit card is a convenient way to
pay, especially if money is tight before pay day. Credit cards are
accepted in most places and can act as a good back up for any
unplanned expenses. You never know when an emergency will arise and
it’s always good to have a credit card at these times.
Safety
If you buy a holiday and the company
goes bust or there are any other issues, a credit card is a much
safer method of payment, as you will get the money back. If your
credit card is stolen, you will not be held liable for the additional
costs, which means it is the safest option for carrying around with
you.
Improve credit
If you have no credit rating or a bad
credit rating, a credit card will help to improve your rating. There
are credit cards which are suitable for everyone and these offer
different levels of interest, depending on your affordability. It can
be hugely beneficial if you want to take out a mortgage in the
future, so the sooner you start building your credit rating, the
better. As long as you keep making the minimum payments, your credit
rating will improve.
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| Credit cards help with tracking purchases |
Purchase tracking
If you like to keep track of your
budget and manage your online purchases, a credit card is a good way
of doing it. You can keep track of your purchases by setting up your
online account or by using the telephone banking service. As long as
you use your credit card in the right way and keep track of your
spending, it can be a beneficial way of spending.
Cash withdrawals
It is not usually a good idea to
withdraw cash on your credit card as you will end up with additional
charges, but it’s an option if you have an emergency and don’t
have the spare funds in your account.
There are all sorts of emergencies that can occur, including car repairs and it is essential to have the cash at these times, which is where a credit card comes in really handy.
There are all sorts of emergencies that can occur, including car repairs and it is essential to have the cash at these times, which is where a credit card comes in really handy.
Cash back and other rewards
There are many credit cards which will
offer you cash back on your spending or other rewards such as
discounts and loyalty points. It is a good idea to compare the
benefits of the best credit cards around as you will get more for
your money in the long run. The cash back and rewards will depend on
what suits your circumstances best but you will usually find
something for all tastes.
Your credit card can be a life saver
when you need it most, so keep on top of your payments and you will
always have it handy for any of life’s little emergencies.
About the author: This article was
written by Jenna Evans with the help of CurrencyIndex – the experts in foreign currency.
Image licenses: Imagesof Money, CC BY 2.0 and 401K2013, CC BY-S.A. 2.0
