The Top Ten Reasons Everyone Should Have A Credit Card

With over 60 million credit cards in existence within the UK most adults have one. And there is good reason why this is the case. Using a credit card sensibly can have its uses. Here are our top ten reasons to own a credit card:

1. You don't have to carry cash: Which makes carrying a credit card a very convenient way of purchasing goods. No more folded wads of cash in your pocket. In addition, in cash transactions you always get change which tends to frizzle away! With credit cards you pay the exact amount, no change loose.

2. Short term interest free credit: If you are restricted by your bank balance until your next pay day, then credit cards can help if you see something you really need to buy before you actually get paid. Most credit card deals give you between 40 and 60 days of an 'interest free' period which means that you only pay for your purchase when the bill comes, not at the actual time of buying.

3&4. Free travel insurance and other travel benefits: Many credit card providers offer free travel insurance simply for holding a particular credit card. Others will provide travel insurance when you purchase a plane ticket or holiday using your credit card. In addition, many credit cards are recognised worldwide, making it easy to pay for hotels, car hire and restaurant bills; wherever in the world you are.

5. Controlling your spend: With the detail credit card statements go into, you can easily keep on top of your spending. Knowing where it is going on a monthly basis you can review what it has been spent on and change your spending habits accordingly, before the spending gets out of control.

6. Piece of Mind with Purchase Protection: A major benefit of using a credit card is that they offer purchase protection in the event that the goods you have bought are faulty, lost, stolen or in the case of a service, not delivered. Buying using other methods does not offer this level of protection. If you are looking to purchase something of particular value using a credit card offers you that extra piece of mind.

7. Shopping online: The UK leads the way in internet shopping. According to recent research from Eurostat, the statistical office of the European Union, 79 per cent of the UK's internet users bought or ordered goods or services online in 2010. And, credit cards are the ideal way to pay for goods and services online. They offer a secure and convenient way for you to buy and encrypted web security allows you to store your card details online to make for extra fast checkout at your favourite online stores.

8. Safer: You might have noticed the reoccurring theme so far is security, carrying large quantities of cash around carries many risks of course. Have your money stolen and that's it, not much can be done, however credit card companies use technology to monitor spending patterns, any breaking in the pattern will alert the card company to suspected identity theft and fraud. If this turns out to be the case your card and account can be automatically frozen in quick time.

9. Improve Your Credit Score: Your credit rating can benefit from a big boost by having a credit card, though it will only help as long as you keep to the terms of your credit agreement. From this your credit report will show responsibility with credit, and it goes without saying, the better credit report you have the better rates you will have access to for mortgages and loans.

10. Credit without the InterestWith almost all credit cards you will have 'interest free credit' as long as you repay the credit spent before the specified due date. Though keep an eye out for cards that charge an annual fee, especially if you're shopping around for a new credit card deal.

Sensible ownership and use of a credit card can be very beneficial!