The Top Ten Reasons Everyone Should Have A Credit Card

Are you one of the minorities of Brits that doesn't hold a credit card? With over 60.7 million cards in circulation at the end of November 2009, they have never been more popular. If you don't have a credit card there are many advantages to holding one. Careful usage of a credit card avoiding credit card debt,can help you manage your finances more effectively and so here are ten reasons you should have a credit card.

1. Convenient: I think we all know how much of a hassle it is when we see something we really want to buy, but have to pop to an ATM first to either withdraw money or check the old bank balance. Credit cards eliminate this chore by providing credit that you can spend then and there. Similarly, credit cards prevent the need to carry big sums on your person, so the purchase of more expensive products is easier and in fact safer.

2. You don't have to pay immediately: Most credit cards have an 'interest free' period of normally around 6 to 8 weeks. This means that you only pay for your purchases when your bill arrives, not at the time of purchase.

3&4. Going on holiday? Then get free travel in insurance and even more travel benefits: There are many travel benefits you can get with a credit card, many credit cards are recognised worldwide, so booking rental cars, hotels or paying restaurant bills is straightforward. With some card companies you will automatically be offered free travel insurance, while other companies will instead activate free travel insurance if you buy airline tickets with that credit card.

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 cut back.

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 cash or even a debit card 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. Buying of the Web: More and more people are now shopping online in the hope to grab the best bargains and value for money. Recent research in fact suggests that 79 per cent of British internet users ordered goods and/or services online last year alone. Using credit cards to make these purchases offers a secure and convenient method of buying and various encrypted operating securities offer a safe way to store your card details online which makes future purchases quick and simple.

8. Safe and Secure: Credit card companies used highly sophisticated techniques 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 make all your monthly repayments on time, 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. Interest free credit: Most credit card providers will not charge you any interest or fees if you repay your balance before the due date. This means that you can benefit from 'interest free credit'. Some credit cards do charge an annual fee, however, so beware of this charge if you are considering a new credit card.

The top ten reason to have a flexible friend in your pocket!


------

JustClearMyDebts.com one of the UK's leading websites for Free Debt Advice, including easy to understand plain English guides including IVA Information, Debt Management Plans, Credit Card Debt, and more.