7 Benefits of Having a Credit Card for Purchases

With credit card debt at an alarming rate, it is no wonder people are afraid to use them or even have them in their wallet. Many people have simply decided to pay cash for everything and cut up their credit cards. That is not necessary and could even be considered a foolish thing to do.

Credit cards are one of the financial staples in this modern society. Having a credit card is not necessarily a bad thing, as long as you are a wise consumer and utilize good debt management. This is key!

If you still don’t have the self-control or dollar sense required for being a credit card bearing consumer, it may be wise to forego the piece of plastic. But, for most people using some common sense and using credit cards wisely, there are actually some benefits to owning a credit card or two.

If you are looking to buy a television or a new refrigerator, forking over hundreds of dollars in small bills may be pretty impractical.  When you walk into an appliance store and find the item you need, you may be short a few bucks and be unable to make a purchase.  Having a credit card just makes big purchases much easier.

There may be times in your life you will face a financial emergency. You may not have the cash to pay for a new set of tires, but require them to have a car to get to work. If you have a family member suddenly get sick and you need to get on a plane, it is much easier to make a airline ticket purchase if you have a credit card.

When you go to make a large purchase like a car or home, lenders will look at your credit score.  If you have not ever borrowed money nor do you have any credit cards, it is difficult for a lender to determine if you have good credit it or not.  Part of establishing a good credit score is by paying off revolving credit cards on a timely basis.

If you use your credit cards wisely, you can actually get cash back or points towards travel, gift cards, or other merchandise.  Most of the time, it is only a small amount like 1% or 2%, but this can add up over time if you use your credit cards often.  Many times, credit card companies will run specials where you can get 5% for certain purchases.  While it is not much, it is more return that if you use cash only.

I have already mentioned the convenience of using credit cards for big purchases. But, it is also helpful for everyday purchases. It can become inconvenient to have to be constantly going to the ATM or the bank to have cash readily available.

Unfortunately, if you get your wallet lost or stolen, you can also kiss that cash goodbye.  Canceling a credit card may be inconvenient, but losing hundreds of dollars will probably upset you a little bit more.

Which brings me to this next benefit. You may not think you could ever lose your wallet or even worse get it stolen. But, it can happen to anyone

If you are on your way to a big night out including a fancy dinner, a movie, and drinks afterwards, you may have hundreds of dollars in your wallet. If you lost your wallet that night, it might put a damper on the night’s events. Having an extra credit card in case of emergencies could make this loss less of a tragedy.

In today’s world of the Internet, there are often many deals available online that you cannot find by going to a store.  Often times, an item may even be cheaper.  Not only that, but cost comparison from the comfort of your home is certainly easier than running all around town to beat the price.

Remember, these benefits are only beneficial is you use your credit cards wisely. I am not advocating that someone who is not wise with debt management, run out and get a credit card. If you do not track your purchases, only pay the minimums, or make a late payment, all bets are off. But if you are a smart consumer, you can reap in the benefits of using a credit card for all your purchases.