Many people have heard the terrible stories of people racking up massive debts on their credit card. Overdue bills and extravagant purchases are a well know route to ruining your finances, which why is why credit cards carry a certain stigma.
This situation only tends to arise through bad management on the part of the holder, but it is worth considering the numerous people that manage a credit card perfectly and can actually reap many benefits from owning one – all it takes is a bit of understanding and a little responsibility.
There is a reason credit cards are so widely used, it because they have a number of advantages that can help you out. As long as you are aware of the risks and use it with caution, there are a number of different situations where having a credit card is advantageous, and in some cases you can actually gain from using your credit card properly.
In life, you never can tell when something is going to pop up that forces you to purchase something that you may not be able to afford. A credit card can allow you to make a large purchase and pay the cost over a longer period of time at much more manageable payments.
In fact, if you have 0% interest on your card, it won’t even cost you anything to borrow. As long as you pay your monthly balance for your card on time, it is allowing you to borrow the money for free. Maybe our cooker breaks down or your car needs some work done, having a card that can cover the cost of what you need is a massive help for anyone.
We all shop online these days, its fast, easy and sometimes even much cheaper. Nearly every form of online commerce accepts credit card payment, meaning you can shop at your leisure and buy whatever you may need or want.
Purchases made with your card are consumer protected too, meaning you don’t need to worry about paying the cost if your get broken goods. Even worse, you could not actually receive your item, it could be fraud or otherwise, but knowing that you can get your money back should any problem arise is a massive relief.
Speaking of fraud, in the off chance you are a victim of credit card fraud, you will not have to pay for any of the purchase made in your name.
You can manage your finance is the best possible way with a credit card. You could have debt on other cards that have high interest rates, or fines. Transferring this onto a 0% interest is essentially meaning you can loan the money to pay the debts for free, helping ease any woes you could have. Planning carefully which type of credit card you need will unquestionably help you out with any situations that requires it.
Planning your payments perfectly can actually have you rewarded with some credit cards. Some will choose not to use a card unless it is an emergency, but if you regularly meet your payments and pay little to no interest, you can be rewarded. It could be loyalty points or air miles, or even cashback, many different cards have various offers.
Choosing a credit card that works perfectly for what you need is not only a sound plan, but it is a great idea. If you know that you can be responsible enough to manage it correctly and gain the benefits you need, it should be a no brainer!