Credit Cards Benefits

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Shadrach   in Banking & Money

Last updated: 08 January 2020, 11:03 GMT

Credit cards can be useful your financial, if used correctly. With 61.9 million regular credit card users in the UK it’s clear that many people find them helpful

The benefits of Credit Cards

Debit cards

If you’re worry about making monthly payment without overspending it, simply using a debit card for purchases is a perfect alternative. However, it won’t allow you to spend money you don’t have, unless you’ve arranged an overdraft. This means you may go short some months if you’ve made larger purchases than normal

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Overdraft

If you need a little extra on a short-term basis, arranging an overdraft with your bank is a great way to get an injection of cash. Because overdrafts are part of your current account, you can withdraw the agreed amount in cash too, allowing for extra flexibility.

Loan

Loan are easy way to use extra funds. With so many types of loans available, from personal to secured, short-term to guarantor, you’re sure to find a loan that suits your circumstances. Loans can be useful to help you if you’re facing an unexpected cost – such as boiler repairs or car troubles – or you’d like to finance something big, such as home improvements

But always ensure you can meet your repayments, otherwise you’ll be faced with even more debt as a result

Whether you decide to take out a credit card or use an alternative, careful budgeting and planning is needed to ensure you are able to pay back the money you owe.

Protection on purchases.

When you buy anything between £100 and £3,000 with your credit card you’re protected under Section 75 of the Consumer Credit Act. This means if something goes wrong, your credit card provider must take the same responsibility as the retailer.

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To Help spread large costs

if you are making a huge purchase, ideally a one-off, then credit cards are a great way you can spread the cost and make monthly repayments after

You can earn cashback

Many credit cards offer cashback rewards and could earn you hundreds a year – if you clear the balance in full each month. However, many of these cards charge an annual fee, so factor that in when you’re shopping around for the best rewards.

To improve credit rating

Credit cards can improve your credit rating if you demonstrate you can use the card responsibly and make regular monthly payments.




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