The top 10 benefits of credit cards

More and more consumers are opting to carry credit cards as opposed to stuffing their wallets with notes or rattling around with pockets full of loose change. Apart from the obvious convenience, what are the other reasons to swap your readies for credit cards?

1) Believe it or not, but borrowing can make you more attractive to lenders. As long as you meet your repayments in full and on time, the more you borrow, the more you will be offered. This is because the process of borrowing and repaying improves your credit score, making you eligible for bigger and better credit deals.

2) Most consumers are aware of the fact that the best deals are to be found on the Internet. Credit cards are the favoured method of payment, allowing you to make your purchase on the spot and save money on goods that are likely to cost more on the High Street.

3) Most of us have had the experience of needing to pay for something, but not having the cash to hand. Credit cards are now accepted as a standard form of payment pretty much anywhere including abroad, providing you with an instant solution to meeting unexpected payments.

4) When you spend cash, it’s gone. Some credit cards can earn you rewards or cashback while you shop, giving you more ‘bangs for your buck’.

5) Most credit cards will provide you with an itemised statement of your purchases at the end of each month. Using this facility, it is far easier to keep track on just where and how you spend your money – an especially useful tool when money is hard to come by.

6) In addition to offering protection against identity theft and online fraud, credit cards are more secure than cash in the real world. If you’re robbed, that cash is gone forever. However, if you have your card stolen one phone call can render it useless, protecting your funds. Credit card insurance can ensure that any credit that is spent without your permission can be recovered.

7) When you make a cash purchase, your money is no longer working for you. Between the time you purchase something using a credit card and make the repayment at the end of the month, the money in your account is still accruing interest, helping to make money whilst spending!

8 ) Credit cards provide consumers with protection that cash simply can’t offer. For example, in the event that you buy an item that is faulty and the supplier goes into liquidation, a credit card company will pursue the matter on your behalf and do their utmost to recover the monies you have lost.

9) In addition to recovering cash from bankrupt companies, some credit cards also offer insurance against items being broken, lost or stolen after you receive them.

10) Credit cards are accepted at most locations in most countries across the world. Rather than having to check into exchange rates or worry about whether the cash you’re packing is going to make you a target for robbers, credit cards are a convenient method of shopping as though you were at home – no matter where on Earth you may be.