Reasons for Using a Credit Card

Although credit cards can be somewhat expensive if you accumulate fees and fail to pay the balance in full each month, there are numerous benefits to using them as well. These include:

• Convenience – There is no doubt about it that credit cards are more convenient to use than cash. You never have to worry about having enough cash on hand and credit cards are accepted nearly everywhere.
• Security – Credit cards are also more secure than carrying cash. If you lose your cash, you are out of luck. If you lose your credit card, you can have the account closed and many card issuers will have a new one to you within the next 24 to 48 hours.
• Insurance – Many credit cards have automatic insurance benefits, such as theft insurance, purchase protection, extended warranties, travel insurance, and car rental insurance.
• Rewards – Many of today’s credit cards provide cash back incentives, rewards, and airline miles just for using them to make your purchases. If you pay your balance in full at the end of each billing cycle, you can actually make money with your credit card.
• International acceptance – Although you may have to pay a few extra fees when using your credit card in a foreign country, you don’t have to worry about exchanging your cash for that country’s currency when you use your credit card.