The Advantages of Credit Cards
Credit cards have had bad press over the past few months of the credit crunch, by politicians claiming that they only cause more debt and have unfair rates of interest. There are some truths which are apparent when concerning this method of borrowing, such as people treating it as free money and not thinking about the consequences. However, if a credit card is used in the correct way and you keep up with low mortgage rate refinance payments, they can be very valuable in many aspects.
One of the most beneficial aspects of having a credit card is that it can help you to increase your credit score. If you have little borrowing experience, taking out a credit card helps to convey to other creditors that you are a responsible and reliable borrower. By keeping up with your hostgator coupon code and not always being maxed out, you are proving that you are able to borrow money and pay it back. As a result your credit score is bound to increase, making it easier in the future when applying for a loan or a mortgage.
Another benefit of owning a credit card is that it can be easier to buy things. Some companies, such as those in the travel sector like hotels, airlines and car rental consolidate your student loans prefer payment by credit card, and some do not accept cash payments at all. As well as this convenience, many card companies give insurance on large purchases. An example of this is when airline XL went bust in September, many of the people who had purchased their tickets with a credit card were able to get a refund because of the insurance their credit card offered. Others who had paid in cash or by a bank card were not able to get refunded. A credit card also acts as proof of a purchase, as all purchases are recorded on your statements, so if something gets stolen or lost you can keep your mind at rest because you have proof that you purchased it.
A more obvious benefit of a credit card, and one of the main reasons people apply for a credit card, is that you have access to money during emergencies. If you resist the temptation of spending the money on your credit card, you are left with a good sum of money to use when you most need it. You only pay interest on purchases or on cash withdrawals, so keeping a credit card at home (where you won't be able to spend on it) can be very valuable.
When choosing a moneysupermarketcards/card make sure you shop around- there are hundreds of offers available to choose from. Aim to apply for an moneysupermarketcards/interest free credit card as this could save you a lot of money over the course that the card stays at 0%. Remember, credit cards can get you more into debt, but if used correctly could be highly beneficial.
