There are a number of ways in which credit cards can be
advantageous and beneficial:
Goods can be purchased quickly and easily, in person,
over the phone, or on-line!
Credit cards are international and can be used all over
the world, wherever you see the logo on your card.
Credit cards can provide you with a cost free form of
finance - as long as you repay the money within the grace
period.
Some credit cards offer perks such as discount vouchers,
air miles and even cashback on purchases.
Some companies offer insurance on your purchases, and
can protect your goods in the event of loss or theft. They
can also provide you with travel insurance.
Credit cards can provide you with instant access to cash,
(for which there is usually a fee payable).
However, there are also a number of ways in which credit
card usage can be less positive:
If you fail to repay your borrowings within the grace
period, credit cards tend to be expensive and are hard to
control.
Other forms of borrowing can prove cheaper, e.g. a personal
loan or extension of your existing mortgage. These options
should be considered before applying for a credit card.
It is advisable to keep your receipts of purchases made.
Mistakes do happen and you should cross check your receipts
with your monthly statement. Any discrepancies should be
reported immediately to the company.
Purchases made abroad may not appear on your statement
for a few months and it is therefore difficult to determine
whether or not they have be
