10 Reasons To Keep That Credit Card!

There are very few of us out there that do not have a credit card, At the end of 2009 there were 60.7 million cards in existence. Despite the stigma and constant barrage about debt from every media outlet, credit cards are still popular, simply because they do have advantages for personal finances (if used correctly and rarely of course). Here are ten reasons why having a credit card in your purse or wallet is an advantage and not a disaster waiting to happen...

1. Peace of Mind: They offer the security and peace of mind of not having to carry your bank account around in person for starters, which is an advantage when you have to make a large purchase or emergency buy. Best of all, you do not have to visit cash machine at all to make withdrawals, so you do not have to run round looking for a machine when you are pressed for time.

2. Pay later: You will have between 40 and 60 days interest free time period on most credit cards, only paying for items when the bill arrives and not at the time bought.

3&4. Free Holiday Insurance and get other benefits when travelling: Some credit card providers actually offer free travel insurance or discounted travel benefits simply for holding the card itself. Others will offer these benefits as soon as you purchase your vacation with your credit card. Although what is best about credit cards is that they are recognised globally, so transactions made overseas are easier and hassle free. Also, by using a credit card for purchases abroad, you avoid paying foreign ATM fees.

5. Taking control of your bank balance: Part of managing your wealth and understanding your bank balance is budgeting. Credit cards and credit card statements can help here as they not only give you a total monthly spend (the big number at bottom of the bill) but also itemise your spend. This is handy if you are trying to set and maintain a budget as it gives you a good idea of where cash is going and where you can potentially trim your spend.

6. Purchase Protection: Many of the major credit card companies give you purchase protection cover if the item you buy with your credit card is faulty, lost or stolen. You do not normally have the same level of protection if you use cash or cheque. This can be particularly valuable on big ticket items such as electrical goods or wristwatches.

7. Shopping on the Internet: The growth in UK online sales is phenomenal both in terms of sheer scale and speed. It seem we all love the convenience and the prices. Nearly 80% of those on the web in the UK purchased something online in 2010. That is a lot of transaction. Credit cards offer a secure and simple method of paying for your online shop.

8. Safe and Secure: Credit card companies used highly sophisticated technology to ensure your card is secure and it is you who are using it. Not the same for cash, is it! Fraud is a problem with any type of payment medium whether it be cash, cheques or card, whilst cash has to be the riskiest, credit cards have to be the safest.

9. Credit cards can help your credit rating: If you have a credit card and you keep to the terms of your credit agreement, you will actually improve your credit rating. This is because your credit file will show that you have a good payment record and that you are capable of managing credit responsibly. And, if you have a good credit rating, you will benefit from better value loans or mortgages.

10. Credit that is Interest Free: The major credit card companies do not charge any interest if the full amount owed is repaid before the date repayment is required. Keep an eye out though as if the card company has a yearly charge then you are paying something for the credit.