We are often told when we are young to never get a credit card, and the logic behind this move makes sense when you think about how detrimental a credit card can be in the wrong hands. The main risk of a credit card is the fact that you might live beyond your means and get into debt which you can’t pay back. It is a risk we have to take though, because credit cards have so many benefits which we need to speak about today…
Better credit score
When you are a teenager or a young twenty-something you will likely have no credit history. Our credit score is a huge factor in being accepted for loans and things like a mortgage, and learning how to increase credit score fast is essential in adult life. The best way to increase your credit score right away is by taking out a credit card and using it to pay for your food shop each month. You can then simply pay it off at the end of the month and it will act as a positive record for your credit history and for the future.
Cash back
A lot of the time we use our debit card to pay for things like items online or our bills, however it can also be great for us to use a credit card. When we use a credit card for payments like this, banks and online shops will often offer cash back rewards for the effort. So we can save money by simply paying for an item with a credit card.
Travel convenience
When you go on holiday, you will often take a bucket load of cash with you for your travels to pay for things like food and activities when you are away. Bringing a credit card with you on your holiday instead of cash can be much more convenient because you don’t have to worry about running out of cash. Simply bring your card with you and you will have lots of easy transactions waiting to happen with no stress.
Rewards
A lot of the time when you use a credit card you will be able to enjoy some great rewards. You could end up with discounts for certain stores, free food and even tickets to a theme park or cinema near to you. Reward points are used when you buy items with your card and you can gain a lot of great benefits back from it.
Time to pay
When you have a debit card and you need to pay for an item you have to pay for it right away and you need to make sure that you have got all of the money ready in your account. However, if you only get paid once a month this can be difficult and it can often be hard to afford the things you need. Luckily when you have a credit card you have time to pay off the money and you can time it for 5e end of the month when your Paycheck comes in. It makes it easier for you to live the lifestyle you want.
