6 Reasons to not to say no to credit cards

The intense ubiquity of credit cards has always been disparaged and a few people out there, living a no-credit-card lifestyle have come up with ways to condemn them, for the harsh economic times.

As per populous belief, the lack of transparency from credit card companies turned ugly during recession, but, subsequent to the CARD act in 2010, the industry has opened up as a resourceful financial tool for many.

There are myriad reasons to have a credit card; the biggest are laid down for you:

1. A lot of credit cards have cash back policies that help you get a little proportion of your spending. It can either be through cash every month, or a separate bill once a year. Hence it’s worthwhile to compare credit cards before you apply for one.

2. Haven’t you ever been smitten with rage against that company that gave you something that pricked your pocket real bad, yet did not last a week? How about a chargeback? A lot of credit card companies give you this right to demand a charge back, wherein the credit card company refunds the money to you and then charges the cost to the business.

3. For everyone who is not really good at keeping records, a credit card helps you keep a close check on your monthly expenditure. At the end of every month, you can have a complete and detailed summary of all your spending, without actually having to go to a flashback and record every purchase. Read through the bank statements and you’ll know your spending pattern.

4. Having a bad credit history looks detrimental, however, having no credit history, doesn’t mean any less. Your applications are likely to get rejected, for, the potential lender might have to fight his will and still not be convinced that you are a good credit risk. Moreover, a good credit history does not just help you to get a speedier loan, but proves valuable when applying for rental applications or even a job.

5. While several defame a credit card for their impulse, it’s only a credit card that comes to your rescue when your car suddenly breaks down, or you have to book your tickets online, or have to fly back home for a quick event. A credit card is of great help when no other sources are available.

6. Credit cards offer lower foreign currency exchange fees than the trading cash. While it’s always safe to carry a card instead of your hard money, you save yourself from that annoying chore of finding the money exchange. It’s also good to determine beforehand, the fees charged by your credit card company when withdrawing money from an overseas ATM. Compare your credit card functionalities with the others, for, not all credit cards have a worldwide accepted network.

The upshot of having a credit card at your disposal can be catastrophic if you fail to keep up. However for the ones who play the right cards, credit is limitless.

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