Why you should Carry a Credit Card

Credit cards have revolutionize the credit system. These are small plastic cards which is a system of payment. The user borrows money for payment to a merchant or for cash advances. The card needs a PIN (Personal Identification Number) number in order to use it. Now you can buy practically anything without having cash money.

There are cards available to suit anyone. There are cards to accommodate the student budget; there are cards with low interest rates; cards that you receive rewards and benefit packages; cash back credit cards, and even Airline and Diners cards. You should carry a credit card because it can be beneficial. Before the advent of credit cards, you had to depend on loans from the bank to buy large items or you had to save up to buy them. Credit cards have increased the sale of everything and improve the economy.

The card eliminates the need to carry large amounts of cash. It is a very convenient method of payment. It is especially helpful if items you need are on sale and you don’t have the necessary cash available. You can stock up on these items. You should have a credit card when you travel. There are so many emergency situations that can occur on the way. There could be an accident and you or a member of your family need medical care or you have to find overnight accommodation because of car trouble. There is a myriad of bad situations that can occur when you are travelling overseas. A credit card would be indispensable at such a time.

Having a credit card can help your credit score. If you make the necessary payments on the card on time and also pay off the balance quickly, it will impact in a positive way on your credit score. Also if you have a credit card it could show that you are a responsible person and has a credit history. Gold and platinum cards have the greatest status and provide better benefits and rewards packages.

There is some responsibility to having a credit card. You have to have self control or you will quickly be in debt. Most of these cards have high interest rates. If you miss a monthly payment, the fees and interest could be 20 – 30%. The Banks can raise interest rates for any reason. Enjoy the convenience of your card, but be prudent in using it.