The Benefits of Having a Credit Card
When used appropriately, credit cards are extremely useful financial tools that can help responsible consumers achieve goals and insure against potential disasters. If you’ve been thinking of applying for a card, learn how a line of credit can benefit your everyday life and protect you from unforeseen problems.
Building a solid credit history
Using your card wisely can help establish good credit history that can ultimately help you secure a mortgage, automobile or small business loan. When properly managed, credit cards can also improve your credit-to-debt ratio, which inevitably improves your overall financial standing in the eyes of lenders.
Making online purchases
Online shopping has become an enormous industry. Credit cards don’t only make online shopping easier and safer, they are often necessary for securing car rental, hotel and other reservations.
If you’re one of the many who have trouble maintaining financial records; your monthly card statement and online purchasing history can provide an excellent way for you to keep track of purchases.
Many card issuers offer a host of rewards, such as airline mileage and cash back, to loyal customers who use their cards responsibly and relatively frequently.
When emergencies strike, some call on friends and parents for financial assistance. Unfortunately, not everyone enjoys that luxury. In dire times, a credit card may be your only source of cash. Instantaneous credit doesn’t only offer convenience and insurance against unforeseen disasters; it provides peace of mind in a world fraught with all types of potential pitfalls.
These days, many people use check and debit cards to shop online and make purchases at brick-and-mortar stores. Unfortunately, if a thief gets a hold of one of these cards and racks up hundreds of dollars in purchases; you may have to pay all or a large portion of the charges. If someone steals your credit card, you are legally required to pay no more than $50 of the thief’s charges. Though some banks are now extending the same type of consumer protection to debit cardholders; others have not. To ensure that you are fully protected against fraudulent charges, your best bet is to use a federally regulated credit card.