A credit card is a simple and convenient alternative to cash, and offers many benefits from instant access to cash to exclusive cardholder rewards and membership offers.
Credit cards to the rescue!
If you are short on funds for any reason, others might advise you to borrow money from family or take out a loan.
Neither of these options is a bad idea, however, they have a definite downside – a loan from a family member or friend could put a strain on the relationship, whereas, taking out a loan can be a long process and entail high interest rates and strict repayment terms. We propose a third option, applying for a credit card.
What is a credit card?
A credit card is a card issued to users to enable the cardholder to pay a merchant for goods and services against a line of credit.
This is known as a credit limit and is based on the cardholder’s promise to the card issuer, to pay them the amount charged to the card along with interest and other charges.
Essentially a credit card is both an alternative to cash and another credit or loan option that you can use every day and keep using for a lifetime.
Is it worth it to have more than one credit card?
From student credit cards to balance transfer and rewards credit cards, there certainly is a credit card for everyone. Many people have more than one credit card, so that they can enjoy a wider range of benefits that are usually exclusive to a certain provider.
Frequent travelers usually carry around a rewards credit card that offers them miles or flight ticket benefits and may also have a cash back or low rate credit card for everyday use.
Having more than one credit card may come with significant benefits but may also be expensive if you’re paying multiple annual and interest fees. Weighing up the pros and cons is important and noting that what may work for others may not necessarily work for you is important.
Credit cards are safe, fast & convenient
Obtaining a credit card is as simple as applying online. Once your simple online application form has been submitted, you’re likely to get quick approval and your card will be sent to you in the mail, or you can collect it from a local office, for immediate use.
Nothing could be simpler. Not to mention that credit cards are far safer than cash transactions! Your credit card offers you consumer protection, which is a feature unique to credit cards!
Build up your credit score
When you have a credit card and make sure to use it often, especially for smaller charges that you can pay back on time, you will have a wonderful way to establish a credit history and build a stable credit rating.
With a stable credit rating and established credit history, your line of credit gets increased which will allow you to get more credit when you need or want to make bigger purchases such as buying a car or getting a home loan.
Credit cards are flexible
There is no limit on what you are able to purchase using a credit card. If you are using a credit card for large purchases such as household appliances, perhaps a washing machine or fridge, or car maintenance, a credit card allows you to pay off the amount over a period of time instead of all at once.
The flexibility offered by a credit card facility means that you are able to purchase items that you would otherwise not be able to purchase. While allowing you to repay the amount over a reasonable repayment term which will be much more budget friendly and ensure you don’t over strain your wallet.
Interest-free period helps you save money
As mentioned above, with a credit card you can spread out the payments of your purchases big or small. Additionally, credit cards provide you with an added benefit of having interest free or grace periods – the standard interest free period in the UK is 55 days.
This allows you to make purchases and if you pay off the amount within 55 days, you will not be subject to paying any interest on the charged amount.
No more need for forex when you travel
If you are someone that travels quite a bit, either for work purposes or you just enjoy travelling, you should definitely consider getting a credit card.
Most credit cards (Visa and Mastercard) are accepted locally as well as internationally, therefore aiding payments in domestic and foreign currency. It is a safer way to make purchases and get about abroad. Not to mention the convenience offered by just one credit facility.
Credit card benefits & rewards
Credit card companies are willing to reward you for using your credit card just as you would a debit card for your everyday purchases.
Depending on the card issuer they may have different merit and incentive structures in place that end up giving you rewards either in the form of cash-back, lowered interest rates, lower cost travel tickets or even discounts for various merchants and services.
Summary of credit card benefits
- Instant access to cash when it’s needed
- Large credit limits can be accessed for those with good affordability
- Repay you credit card in full or over a number of months
- Improve your credit rating by repaying your credit card on time
- Access rewards and points from your favorite retailers
- Use your credit card anywhere in the world
- Book hotels, flights and rental cars quickly and easily
Apply for a credit card today
With all of these benefits and features in mind, it begs the question, what is stopping you from applying for your very own credit card?
There are multiple credit card providers available to you be it through your traditional bank or an online lender – the possibilities are endless. As an added bonus, you can apply for your chosen credit card straight from a loan comparison site.