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Many people are put off of using a credit card due to horror stories about high interest rates and hidden charges however, when used carefully, a credit card can be a helpful addition to your purse or wallet!
If you have a credit card it means that you always have access to money wherever you are. Most credit cards can be used in millions of outlets across the world and for online purchases. If you have an emergency that you need funds for your credit card will be there to give you access to the money that you need and if you do not get paid regularly you can use your credit card in the time between pay checks without worrying about overdrafts. These situations are all covered by the number one advantage of having a credit card, convenience.
Credit cards also come with a great level of security. Credit cards are monitored more closely for fraudulent activity than debit cards which offers peace of mind and they also offer purchase protection. Purchase protection means that if you buy something using your credit card, costing between £100 and £30,000, your credit card provider and the retailer will take joint responsibility if it is faulty or does not arrive. This means that you can claim a refund for the product through your credit card company even if the place you bought it from is at fault.
Having a credit card and paying it off on time will improve your credit rating. This is important as if you wanted to take out a large loan or get a mortgage in the future a good credit history will make this easier. Credit cards often offer an interest free period, up to 59 days, so as long as you pay off the full balance within this time you will only pay back what you spend.
If you feel that you will be able to pay off the whole credit card balance each month it could be worth applying for a credit card which comes with some incentives. For example there are credit card providers who offer loyalty points, cashback or donations to charity depending on how much you spend. These cards can encourage you to spend more so always ensure that you pay the balance in full to avoid interest. This way you really will be receiving rewards with no negative effect on yourself.
Of course it is possible to get into debt through using a credit card if you do not take care with what you are spending. However, if you use a credit card wisely and pay the full balance each month it can be a great way to manage your money and gain some benefits too!
There are many different types of credit card available and it can be difficult to choose the right one for you. www.Best4Loans.com can help you to find the most suitable credit card for your circumstances and ensure that you are getting the most out of it. All you need to do is use their website to compare the different credit cards and then click ‘Apply’.
By Sasha Davison
24th February 2014
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