Mini Christmas village for the kids
Guest post written by Ellen Douglas Guest post written by Ellen Douglas Every time I…
If you’re lucky enough to be in a reasonably healthy financial situation you may wonder why you’d even need to use a credit card. However, even the wealthiest individuals make use of them, so there must be some benefits. Here are a few of our favourite reasons to consider them:
Improve your credit score
Lenders like to see evidence you’re a responsible borrower and a worthwhile risk before giving you access to credit. While you may not need this immediately, it’s always worth having one eye on the future. For example, a good credit score will boost your chances of being approved for a mortgage. A great way to do this is to have a track record of regularly meeting repayments – no matter how small they may seem – on time.
If you’ve ever bought goods online that never turned up or were faulty you’ll know how frustrating the experience can be, particularly if the retailer isn’t keen on issuing a refund. With a credit card this situation can typically be resolved with a quick telephone call. Compare credit cards to find out what protection they provide, as certain products also offer additional warranties for purchases such as electronic goods.
Certain companies may not accept payment by debit card when you’re travelling overseas, even if it’s supplied by a major bank. Credit cards are accepted around the globe and prevent you from having to carry large sums of money around with you at any given time, which can prove particularly risky when in unfamiliar surroundings away from home. Of course, this extra security is a bonus wherever you are in the world.
Reap the rewards
It’s not often you get anything more than the goods or services you’ve purchased when you shop, but certain credit cards will reward you for your spending. Perks can vary, but examples include cash back and air miles, meaning you can enjoy something using cash or a debit card alone wouldn’t have provided you with.
Keep track of your expenditure
If you’re looking to stay on top of where your money is being spent the monthly statement from your credit card provider might be a good way to do just that. It will detail where and when you’ve spent, which might help you to form a budget planner.