There are some people that get very worried about the idea of having a credit card and it is actually not that surprising. It can be easy to get out of control with a card, spend too much on it and then have a lot of debt that you need to pay off. If you have self-discipline and set up a direct debit to pay the card off in full each month, this should not need to be a problem for you. Just keep a check on what you are spending and only spend money that you would normally spend. However, many people find that having a credit card is really useful for them in a number of ways. It is worth considering these when you are thinking about whether to get a card or not.
– Secure online transactions – when you are buying things online, there is a risk that your transaction might be intercepted and that your card details might be stolen. If this happens with a debit card then it might be very difficult for you to get that stolen money back. However, if this happens with a credit card there is more protection and you can often get back the money. This can also apply if you pay for something and do not receive it or if you feel it is not how it was described but you are refused a refund.
– Possibility of cashback – some credit cards offer cashback or similar reward schemes. They are usually set up so that the more you spend each month; the more cash back or rewards you get. The cash back will be credited to the card to spend the following month but with a reward scheme the way that they are awarded will change depending on the specific scheme. These can be great as you get a bit extra for just using the card as you would normally but they can tend to charge higher interest, so only if you intend to pay off the full balance each month should you consider getting one of these, or else you could end up paying out more than you would with a conventional card even allowing for the reward or cashback that you will get.
– Interest free credit – when you have a credit card you can always pay with it right away and then you do not need to pay for the item that you bought with the card until you get the credit card bill. This means that you will not have to pay out anything for at least a few weeks, even longer. This can give you some interest free credit. You do need to be careful though that you do not get tempted to not pay off the bill in full as once you start paying less than the full amount you will have to start paying interest and this will no longer be interest free.
– Quick and convenient – when you are paying ins hops it can be so much quicker and more convenient to use a credit card rather than cash. Sometimes there are tills where you can scan your own shopping which often have shorter queues and some people find them quicker but you have to have a credit card to pay at them. Fiddling around with cash can take time and it means that you always have to be sure that you keep enough cash with you all of the time so that you can afford the things that you need.
– More protection from theft – if your purse is stolen or lost, then any cash that you have in there could just be taken and you will not be able to do anything about getting it back. You have no proof that it had cash in it and so the police and your insurance company will be unlikely to help you. However, if you have a credit card in there, you can tell the bank it has been stolen and they can put a hold on it so that it cannot be used. This means that it can stop too much money being stolen and you should be able to get back any money that has been spent on it as well.