Fantastic Plastic: The Benefits Of Credit Cards

by Mike on April 26, 2017

Fantastic Plastic: The Benefits Of Credit Cards

Credit cards have a bit of a bad reputation. They are associated with large amounts of debt, so people tend to shy away from them. Although some people do get themselves into trouble with their credit cards, that doesn’t mean that you shouldn’t consider getting one at all. If you don’t use them wisely, you might run into problems. However, if you are sensible about it, there are a lot of benefits to having a credit card. Here is a quick guide to getting a good credit card and using it properly.

Choosing A Credit Card

There are so many different credit card offers on the market, it can be hard to know which ones are worth your time. There are a few things to look out for when you’re trying to pick the best deal. Firstly, check the Annual Percentage Rate (APR). This is the price of borrowing on the card, so when you pay the balance back, you will owe the money that you borrowed, plus some interest which is decided by the APR. Be careful that you don’t get caught out by introductory interest rates. A lot of credit cards will offer a very attractive rate to start with, but a few months down the line it can increase dramatically. Don’t make the mistake of getting a card based on the initial rate, only to find out that you’re paying above the odds once that introductory period is over. The other benefits that credit cards offer should also factor into your decision. Some will offer you cashback on your purchases, so it is a good way of earning a bit of extra cash.  The deals available to you will be dependent on your credit rating. If you have a good rating then you will have more options than if you have a bad rating. Although it is more difficult, having a bad credit rating doesn’t mean that you can’t get a credit card at all. Look for info on applying for credit cards online with bad or no credit, as some of these deals might be better suited to you than the traditional banks.

The Benefits Of Credit Cards

The main reason that people end up in trouble with their credit cards is that they see them as an endless money supply. Being responsible with your credit card is the key to making work for you. One of the main benefits of a credit card is that it can act as a valuable source of emergency money. When you are hit by an unexpected expense, you might not have the money in your bank to pay for it. You can use your credit card to cover yourself for a month or two, but make sure that you pay it back as soon as possible. Improving your credit rating is another use for a credit card. By making small purchases and paying the balance off quickly, you can prove that you are reliable with your money and boost your credit score. Credit cards also offer you a lot more protection on purchases than a standard credit card. Buying flights is one of the most common examples; you can only get insurance when you buy them on a credit card so if your flight gets canceled, and you’ve not used one, you will lose all of that money.

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