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
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
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 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.
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.
Shadrach is a Trending Journalist. His first job was as a newsreader and journalist at an award winning magazine. He spends most of his time scouring the internet for the hottest topics to share with his readers.