When it comes to having and using a credit card, most people fall into one of two camps. Either they hate them and won’t use them or they have them because they understand the benefits credit cards can give. Though the use of credit cards can sometimes have a bad reputation in the media, the truth is that credit cards are good for you. They can offer you perks that you can’t get from cash or debit cards.
One perk is that credit cards are safer to carry than cash or debit cards. If you lose your cash or it gets stolen, you don’t have much recourse to get it back. If someone steals your debit card, they can quickly go on a major shopping spree. Since many retailers don’t ask for a photo ID when someone uses a debit card, anyone can take advantage of your hard-earned dollars. But with a credit card, there are federal laws in place that protect you against any unauthorized charges.
Another perk is that having credit cards can make it easy for you to plan out your monthly expenses. You can see where you’re using your money every month. Having a record of what you spend your money on can be a great teaching tool. This will help you learn to eliminate unnecessary expenses.
You have someone in your corner when you have a problem with anything you buy on a credit card. If you pay cash or use your debit card to order something online and there’s a problem, you can sometimes encounter sellers that will not honor refund policies or money back guarantees. When you have a credit card, you can simply call up the company that gave you the card and they’ll handle making sure you get the money refunded back to your card.
If you want to take a trip and need to rent a car, having a credit card is a good idea. You can use a debit card as a credit card to rent one and some people do this. But they don’t understand the risk that they’re taking. If something goes wrong and the rental company decides to charge for it, then the checking or savings account associated with a debit card could be wiped clean. With a credit card, you can prevent this from happening.
Even if your credit isn’t that good, you should have a credit card. By using your credit card every month and paying it off in full, you can improve your credit rating. If you live on a tight budget now, there is still a way that you can use your credit card in your favor. You can charge what you would normally pay using your debit card, such as your utilities, to pay the credit card balance in full every month.
Credit card companies are willing to entice you to use their card. Many of them will offer users free goodies to use their cards. Some of these items might be airline miles, money back or other gift items.
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