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You Are Here: Home > Personal Finance > Credit Cards > Advantages
Credit Cards - Advantages
Want a great Credit Card? Find out why these 4 Cards are probably the best on the market. So much so we use 3 of them ourselves. More information.

1. Free credit if used correctly

  • Most Credit Cards don't charge an annual fee, although some are starting to levy them
  • If your provider wants to charge you an annual fee consider taking your business elsewhere

2. Spend now pay later

  • If you pay off the full balance at the end of the month then you've earned 'free' money because Credit Card bills are settled about a month in arrears, the so-called grace period
  • Time your purchases right and it's possible to get up to 50-60 days of interest free credit. See - How Credit Card APR works

3. Purchase Protection

  • Buy some faulty goods with your credit card and they'll normally be 100% insured for a specific period. Insurance also sometimes offers cover if the item is lost or stolen
  • It is important to check to see what cover is available because some Cards are far better than others, with some companies offering no protection at all. See - What is Section 75 and how it protects credit card purchases

4. Loss Protection

  • Get far more security for paying for goods with a credit card than with cash
  • Should your card be stolen it just takes a simple call to your provider who will put a stop on it and issue a new card. See - Your rights to compensation

5. Use a card to rebuild your Credit Rating

6. Good Security

7. 0% Balance transfers

  • These enable you to transfer a balance from one Credit Card to a different one that perhaps is charging less interest, usually for a specified period of time
  • Note there is a one-off fee charged, normally 2.5% - 3% of the amount being transferred

8. Free travel insurance

  • Often when you buy an airline ticket or a holiday using your credit card you'll get free travel insurance
  • Always check what's on offer with your individual Card as the insurance offered is normally not as comprehensive as if a separate stand-alone policy is bought

9. Travel Advantages

  • Spending money when abroad via a credit card is normally far cheaper than using cash obtained from a cash machine, but it can still be expensive if you don't have the right card -
  • Also, when you use your card abroad there is the added bonus of protection should the goods be faulty or lost

10. Monthly Spending Analysis

11. No plastic = No sale

  • Many purchases these days such as Car rentals or Hotel bookings won't accept your business unless you have a Credit Card
  • You can of course always settle your bill in cash but the Card is needed as a deposit

12. Points (and Rewards) means prizes!

  • Many cards offer cash back or points such as Airmiles or gift vouchers
  • These often are not that much of a selling point if you spend only a few hundred pounds per month but if you're a big spender then reward style cards can be great

See also

FREE Report

How to Audit your Credit File

With errors your rating will suffer
How a clean credit rating can save you money
4 steps to a clean up any mistakes
Don't discount the importance of your credit file
It's absolutely critical.....
Get the FREE report
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