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4 Advantages Of Using A Credit Card

by Mike

This is a guest post.

Credit cards offer a flexible way to pay for goods and services big and small – and they’re popular in western countries around the world as a result. However, they can divide opinion among consumers and experts, mainly due to the pitfalls that can be associated with their use. Just as with other financial products, the issues often come when people borrow beyond their means.

And while even the biggest credit card fan would admit they have pitfalls, there are also plenty of advantages to holding one of these pieces of plastic. So before you sign on the dotted line on that credit card application, read our guide to the advantages of having a flexible friend in your wallet or purse.

1. They reduce the need for cash
Most people like to carry around a little change or a few small notes, but it’s much safer to have a debit or credit card that can be cancelled in the event of theft or loss. Cards are also more convenient, especially given that most shops and service providers now have chip and pin technology.

2. They offer purchase protection
Your money is safer if it’s spent on a credit card, compared with cash or even a debit card. This is due to legislation under the Consumer Credit Act, which protects credit card purchases – this means that if your supplier goes bust, you’ve got a much better chance of getting your money back than if you’d paid cash or with a debit card.

3. They offer a flexible way to borrow
Many of us need to borrow a little money from time to time, whether it’s to meet out household bills before payday or spending on something unexpected like a car repair or home improvement. Credit cards offer a flexible way to do this – find one with 0% on purchases and, providing you pay off the balance in full at the end of the month, you shouldn’t end up paying any interest.

4. They can offer extra benefits
There are plenty of credit card offers out there aimed at enticing you to sign on the dotted line. From cash-back credit card deals to Airmiles credit card rewards, there’s often a good reason why spending sensibly with a credit card can leave you ahead of the game. The trick is to stay with one card during the introductory deal period then move to another once it finishes, ensuring you get the best deal on offers at the time.

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Jenna, Adaptu Community Manager

The perks definitely seem worth it, just make sure you do your research. And only buy things you can actually afford.

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