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Sunday, November 10, 2013

Benefits of using a credit card

By Jenna Evans
Transaction history is documented via credit card records
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.

Credit card users have access to reward programs
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.

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