Owning a credit card is not a bad financial decision in itself, and everyone should have at least one available. They offer convenience, they help establish credit if used properly, and they can help you keep track of expenditures.

How are Credit Cards Useful?

Many people believe that owning a credit card brings negative consequences, and leads to credit card debt. In reality, these cards offer a reliable, safe way of paying for products and services. However, financial experts suggest people use them carefully.

Safety

Most banks offer insurance on credit card accounts. When an illicit charge appears, the charge can be disputed and erased from your balance. Carrying cash also becomes unnecessary, and only minimal losses can occur when your wallet is misplaced or stolen.

Convenience

Making a payment using a credit card is easy and there is no need to run down to the bank or ATM for cash. Paying bills is also convenient, and your account can be put on automatic bill pay.

Accounting

Purchasing items and paying bills with a credit card will create accurate financial records, making it easier to keep track of expenditures and budgeting needs.

Credit score

Using a credit card wisely and paying off the balance on a monthly basis helps create a good credit score. People who have a good credit history receive better terms on car loans, mortgages, or any other type of loan.

Source:

Wisebread Small Business Resource Center: Top Seven Reasons Why I Use a Credit Card for Everything

Credit Card News: Benefits of Using Credit Cards