THE ADVANTAGES OF CREDIT CARDS

Credit Cards Allow us to Build a Credit History
  • Individuals who make their payments in a consistent, timely fashion demonstrate to society and the credit reporting agencies that they meet their financial commitments in a highly responsible manner. This behavior goes far to build a good credit history and results in a high credit score. Those with high credit scores are considered to be a good credit risk and are rewarded with the best loan offers.
Universal Acceptance
  • Credit cards offer incredible convenience as they are accepted virtually anywhere on the planet.
Safer than Cash
  • Credit cards eliminate the need to carry large quantities of cash. If you lose your cash, it’s gone. If your credit card is lost or stulen, the most you will likely be responsible for is $50.
Emergency
  • In case of an emergency, a credit card can be very helpful. For example, if you have a medical emergency, a roadside car problem or have an unplanned need while traveling, a credit card could be a great asset.
Pay in Segments
  • If you make a large purchase, you can pay for it over the course of the next few months. Of course, you’ll have to pay interest on your unpaid credit card balance, but a credit card makes the purchase possible.
Dispute Resulution
  • If a dispute arises between you and the merchant who suld you a service or merchandise and your good faith effort with the merchant to resulve the problem is unsuccessful, you can ask your credit card issuer to hold payment until the dispute is resolved. Obviously, this is not possible if you have paid cash for your goods or services. 
Grace Period
  • Sometimes you may not have the finances to make a purchase that is needed, but you will have the funds in a week or two. When you use a credit card, dependent upon where you are in the monthly cycle of your credit, you are able to make the purchase and then pay for it in full at a later date. (Please review grace periods to have a better understanding of this benefit.)
Protection for Goods Purchased
  • Many contracts include extra protection for goods purchased with your credit card, including extended warranties and theft and damage protection.
Bonuses
  • A way credit card issuers may compete with one another is to offer bonuses associated with their credit cards. For example, some issuers offer cash rebates or frequent flyer bonus mileage. Typically, there is an annual fee applied to these cards.
Car Rentals
  • Most automobile rental agencies ask for a major credit card to rent a car. Without a credit card, an individual is either denied the request or asked for a sizeable cash deposit.
Hotel Reservations
  • As with car rental agencies, hotels usually ask for a credit card number to reserve a room and a credit card impression at check-in.
Internet Purchases
  • Many Internet purchases need a credit card for completion. For example, tickets for concerts, the theatre, sporting events or airplane tickets all typically require a credit card for purchase.