subject: Advantages in applying for a credit card [print this page] Advantages in applying for a credit card Advantages in applying for a credit card
1) Not having to carry around large amounts of cash (convenience)
This one virtually speaks for itself. Carrying around large amounts of cash can be rather dangerous, as it makes you an easy target for pickpockets and other unsavoury types. Its also an inconvenience, making your wallet and/or pocket bigger than it needs to be
2) Buyer protection for items purchased
If you tend to purchase a lot of things that may break or malfunction, like electronics, a credit card can be useful as you will have proof in your credit card statement of having bought the item should you need it for repairs and warranty. If you paid cash and lost the receipt, there is no way of knowing you bought it, for how much and where.
3) Ability to spend beyond the figure stated in our current account
Every now and then along comes a terrific sale item. A bargain so to speak, that you have no money for. Its payday in a week, but this item surely wont stay around for that long and will get snapped up by someone else. This is a perfect opportunity to use your low">http://mbna.ie/creditcards/index.html">low APR credit card deal you applied forto buy it! When you get paid in a weeks time, use it to pay off the balance and never have to pay a single penny of interest rate!
4) Flexibility in spending (budgeting)
The complement to #3 above, credit cards can actually help you manage (and stay on) a budget. Say that you are working part time in two jobs, and your hours fluctuate from week to week. Since you're never sure of how much you'll be earning in any given week, it should be hard to stick to a budget and not overspend. Keeping your credit limit low to the point of the minimum you earn every month, can really help to manage your finances.
Set up a direct debit and have it pay off the balance after each payday. This way you will never be in debt and be building up a good credit score.
5) Emergency funding
"Into every life a little rain must fall" -- or so goes the famous saying. Life would be boring without some spice, although some situations and emergencies we could certainly do without. However, it's always good to have an emergency credit card (or two) tucked away so that you aren't caught totally unawares when the occasional emergency does rear its ugly head.
6) Building credit to buy a home
Probably your most costly expenditure will be a house. It's virtually impossible in today's economy to save up and pay in cash for a house; and yet to get a decent mortgage, you must have a good credit history. Credit cards are but one way of building up and maintaining that credit history.
7) Rewards/miles/bonuses/affiliations
Most every credit card offer these days includes some form of reward or bonus, whether it's airline miles, or just abstract points that can be redeemed almost as cash for any number of goods or services. There are also great football branded credit cards, so you can proudly display your team. If you shop around when applying for a credit card, you'll be amazed at the range of types of rewards offered by the different card companies. Be picky; shop around and apply for only the cards that have terms and conditions that suit you and your lifestyle.
