Why take out a Credit Card?

Question

OK so what are the benefits of credit cards?

Answer 1

Credit cards are good to have to establish a line of credit. This basically just shows that you have to ability to be responsible enough to be given money and pay it back over time. To do this without great fluxuation looks better upon you. If they only want to give you a high interest rate like 15% interest or more go ahead and get it just dont use it and after a year or so they will see that you havent abused it and give you a lower rate. Credit is important and a credit card is the easiest way to establish better credit if you use it wisely.

Answer 2

If you go abroad on holiday, the credit card does not charge you for using their card whereas the banks charge £1.50 per transaction. If you buy something and it doesn't arrive you can get your Credit Card company to claim the money back. You get up to 60 days free credit. If you visit the United States most companies especially the Hire Car Companies will only take a Credit Card. You will still need the Credit Card for the Car Hire companies even if you have paid fully in advance as they always want an imprint of your card in case there is something wrong. Downside is of course, it can be very easy to run up debt, especially if you do not pay off the card every month. As long as you pay off the amount every month, the credit card works fine.

Answer 3

The only benefit is you do not have to have the cash in your pocket all the time, that is about all, the rest of the wonderful benefits are usually traps to get you to spend more money that you have, I personally have enough credit rating to be able to spend 5x my monthly wage, and after how do I pay it back ?. If it is not paid at the end of the month ( no interest ) the the actual interest can be as much as 36% in year, so if you let £1000 ride for a year and you just pay the minimum, you re going to need £360 more than you started with to settle, they are handy but be very care full, you can get into debt very easily.

Answer 4

There are some really good answers posted here as to why you may consider taking out a credit card. However if you are attracted to the payment flexibilty that a credit card offers but are worried about getting into debt you may wish to consider a Pay As You Go MasterCard ?

This would allow you to have access to the payment platform that MasterCard provides but will help to ensure that you do not get into debt. I have attached an example link below. Hope this helps!

http://myvesta.org.uk/cashplus/

Answer 5

I like my credit card because if you are in a restaurant you don't need to worry about how much money you have in your account. It is an extra security because you never know when things will crop up that you need to pay for.

Now that Debit cards are also Chip and Pin they are much preferable but you need to know at all times what your balance is so you don't go overdrawn. I find it easier to use the credit cards and not have to worry,.

Answer 6

Well for starters, you can take out terms on a credit, meaning you can pay straight away like if you had cash or can take it on a payment plan. With a credit card you have to be strong in that you don't just go out and use it willy nilly and then you get yourself into huge debt. If your a big spender, then i suggest you steer clear of getting one.

Answer 7

None whatsoever, I manage quite comfortably without a credit card or a bank account.

I pay cash for everything and don't see why I should add to the obscene profits made by the banks simply for looking after my money.

Answer 8

There are no benefits to credit cards. If you can't afford to buy it - you can't have it. Or, save up for what you want - you'll appreciate it much more.

Answer 9

My credit card is for EMERGENCY USE ONLY!
I don't like them. Don't shop with it. Its just my security blanket in case I should get stranded anytime in an emergency.

Answer 10

You can have want you want and you can it now, but other that nothing apart from a pile of debt and you cant even remember what you bought with the money.