Why do I need a credit card?

If you have ever asked yourself “Why do I need a credit card?” then there are some very important reasons why owning and using a credit card is just an all around smart idea. Read through these reasons for using a credit card and then resolve to make your credit cards work for you and not against you by managing your credit responsibly.

1. Convenience – If you need to make a large purchase or even if you need to make a number of small purchases if you have a credit card you can avoid carrying a large wad of cash on your person at all times. With a credit card there doesn’t need to be the constant worry that can accompany those who have to carry a large amount of cash with them to make a large purchase. In addition to being safer it is just downright easier to carry one small credit card rather than a large wad of cash or even a checkbook. Credit cards and debit cards alike are very convenient for traveling and for everyday purchases.

2. Fraud Protection – If someone steals cash from you then you are pretty much dead in the water but if someone steals your credit card then even if they rack up a lot of fraudulent charges you are still protected from having to pay for those charges and you will get a new credit card shipped out to you in no time. Federal credit card fraud laws limit your liability to just $50 on a stolen credit card but most credit card issuers take it a step further with a zero fraud liability policy for cardholders.

3. Rewards – Those who carry a balance on their credit card can get slammed with interest charges but if you can pay off your balance in full each month then it makes a lot of sense to use a rewards credit card and earn cash back, points, airline miles, or other free stuff just for using your credit card to make purchases that you would ordinarily make anyways. While earning a couple hundred dollars a month in cash back rewards might not seem like a lot at first that money can quickly add up. Just imagine how much money you could earn in cash back rewards after 10 or even 20 years!

Using a credit card is a safe, secure, and convenient way to get cash back and rewards benefits from your everyday purchases. It’s as simply as just swiping your card so be careful to use your credit cards responsibly and never spend more than you have in the bank. Hopefully these reasons for using a credit card have convinced you of the importance of having and using a credit card!