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Flexible Friend? Reasons to Use Your Credit Card

You can read many horror stories online about how we need to avoid using credit cards and cut up any of the ones that we have. A lot of this that we read does make complete sense; credit cards can be dangerous especially if we aren’t good at budgeting and planning our finances. When that happens, it means you can’t pay your card off in full, and you start to build up interest. But contrary to popular belief, if you aim to use your plastic responsibly, then there are many benefits to paying for things with your credit card rather than cash or debit card. But what are those benefits and will they work for you?


Credit Card


Sign Up Bonuses

Because of some of the bad press that credit cards (and banking in general) have been getting, there are plenty of incentives on offer for you to bank with them or to get a new credit card. It might be some up front cash, points, or airmiles that you get when you use the card within a certain amount of time. So it does make sense to get it done and sign up where there are offers. But, of course, never spend more than you are earning. In contrast, you get very little compensation in comparison, when you open a new debit account.



Believe it or not, there are safer and easier to avoid loss of money through fraud when you buy with a credit card. If you buy something online and it never turns up or arrives damaged, then if you’ve bought it with a credit card, you have more cover than if you bought it with a debit card. Some retailers won’t refund when things like that happen, but you can get the money back through your credit card lender. So for large, expensive, or online purchases, then it could be the thing for you.


How many credit cards should I have?



As well as sign up bonuses, you can often get different insurance through your credit card. A lot of the consumer protections that come with it won’t even be obvious when you sign up to get a card. So if you’re looking for a new credit card, then a site like could be a good place to look as you can check what benefits different cards have. If there are things like insurance, then it can save you some money in the long term.


Build Credit Rating

In order to build a credit rating, then according to sites like you need to show that you have been able to pay back the credit that has been loaned to you. One good way to do that is through a credit card. You can buy your groceries on it each month, for example, and then pay back the money at the end of each month. Doing that will build up a positive credit score. The only problem is when you miss payments or don’t make payments. Then it will have a negative impact on your credit score.


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