Advantages of Credit Cards

1. 6 week interest free Period before paying

When you make a purchase on a credit card, it takes upto 6 weeks before you have to pay the credit card company. This is an easy way of gaining an interest free period. Useful, if you are expecting income soon.

2. There is no need to pay any Interest on Credit Cards.

People often focus on how expensive credit cards can be. However, if you manage your credit card carefully there is no need to pay any interest at all. Every financial product can be expensive. - A bank account will charge a lot if you go overdrawn. Credit card company’s will charge high interest. But, as long as you don’t spend beyond your means there is no reason to have to pay any of these interest payments.

3. Insurance for Faulty Goods

Major Credit card companies usually offer insurance for faulty goods. i.e. if there is a problem with a purchase the credit card company will not charge you and sort out the problem with the company directly. This can save a lot of hassle and give peace of mind. This is something you wouldn’t get if you bought it directly

4. Card Insurance

Many worry about the potential of credit card fraud. However, if you take out modest insurance you can easily gain insurance against fraud and misuse of your card. There is no necessity to worry about inappropriate use as long as you take out the very cheap insurance.

5. Bonus Points

Nearly all credit card companies offer some loyalty schemes. Over the course of a year, these cash back offers can be significant, giving you 1-2% cashback.

6. Saves Carrying cash

Much easier than carrying around cash. Easier to make purchases on internet.

Related:

• Mistakes of using credit cards