Your Flexible Friend: Why Having a Credit Card Can Actually Be a Good Thing

Credit cards, when used in the right way, can be a great way to manage your money. So if you’re not the best at money management, then it might be best to avoid them. But if you budget well then it could be the best thing to do as there are several benefits to having a credit card. It is obviously important to make sure that you can make your repayments each month, otherwise, it defeats the point of the getting the benefits from the credit card. So here are some of the benefits from credit cards, and why they might be right for you.

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Cashback

As long as you pay your credit card back in full each month, then getting the cashback benefits can be great. It can be quite an easy way to get some money back from your purchases. So in actual fact, you’ll be paying less than you would beforehand. So look out for the best credit card offers and see if they have a cashback rate too. Again, this only makes sense if you’re able to pay off the credit card in full, to see the most benefit.

Goods Protection

Did you know what under the section 75 of the Consumer Credit Act, that you actually have more protection when you buy something with a credit card? So if you order something that is faulty or never arrives, for example, you can get compensation from it. If a retailer refuses or has gone out of business, then you can apply for the compensation through the credit card company. So for larger purchases, especially for things bought online, using a credit card can be one of the best ways to go.

Boost Your Credit Score

If you want to build up a good credit score, then paying for using a credit card for your everyday purchases, and then making the repayments on time each month, are an easy way to do so. It shows that you are reliable and do actually make payments. Meaning that lenders are much more likely to want to lend to you. So if you want to get a mortgage someday, or get a loan for something like home improvements, for example, then it can be worth doing.

Theft Protection

If you lose your purse or have it stolen, and it is full of cash, it is basically impossible to recoup. But if you have your purse stolen, any fraudulent use of the cards won’t mean that you have to pay it off. You won’t be liable, as long as it wasn’t stolen due to negligence on your part. So if that did happen, you wouldn’t need to worry about having to pay off what someone else bought in your name.

Certain Transactions

If you travel with work or claim a lot of expenses, then those transactions might be best on a credit card, as the money doesn’t have to ever come out of your own pocket. Some stores only allow payment by credit cards, such as tickets and similar events. So a credit card is a must for those types of transactions.