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Why it Pays to Have a Credit Card

24 April 2017 No Comment

A lot of people will advise you to avoid credit cards like the plague when you’re young and trying to find your way in life, but credit cards, when used correctly can be an excellent tool for managing your money and keeping on top of your finances. Of course, if they are misused, and you run up huge bills, they could cause huge problems for you now and in the future, but if you’re the kind of person who can keep your spending in check, a  credit card could offer you several benefits.

Here are some of the most impressive ways that having a credit card can make your financial life better:


A lot of credit cards now offer cashback benefits to encourage more people to apply for and use them regularly. This is a great way of saving money on all of your purchases, but it will only work to your benefit if you pay the full balance of the card off each month.

Purchase Protection

In most cases, when you buy something with a credit card, you will be afforded a higher level of protection, should something go wrong, than you would benefit from when paying by cash or debit card. This is because credit card companies are responsible for compensation you should goods be faulty or if you are ripped off in some way. So, if you’re making a large purchase, using your credit card might be the best way to pay.

Improve Your Credit Score

If you’re young and you’ve never used credit before, your credit rating is unlikely to be the best. By using your credit card for everyday purchases and making repayments on time each month, you can quickly build up a credit history that will help you get a loan or mortgage in the future.

If you have a poor credit score due to bad credit in the past, as you can see from the best credit repair reviews, you have a number of options available to you, to sort out the situation, but once you’re over the worst, taking out a credit card for people with bad credit will help build up your credit score in the same way as it does for people with no credit history.

Protects Against Theft

If you have your wallet stolen and the thieves spend all your cash, it will be pretty impossible for you to recoup the money, but if you’re mugged, and all the perpetrators get are your credit cards, should they work out the pin and go on a spending spree, you will not be liable for the balance.

Business Transactions

If you have certain work-related expenses that are reimbursed at a later date, not only does paying by credit card make it easier for you to track your expenditure, but it also means you don’t have to find the money out of your own pocket, which could leave you short in your personal life.

As you can see, there are numerous benefits to having a credit card, but you must use yours responsibly, or there really is no point having one!

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