A major perk of using a credit card is that all purchases above £100 are covered under Section 75 of the Consumer Credit Act. Your credit card company is jointly liable with the supplier, so if your items don’t arrive, are damaged in transit, or the supplier goes bankrupt, you should get your money back.
Additionally, a rewards credit card will allow you to collect airmiles, loyalty points, or cashback as you spend, possibly saving you money as long as you pay off your balance in full each month.
Even if you don’t need a loan, you may want to think about getting a credit card for one of the many benefits they offer. Making a significant purchase or repairing your credit can be accomplished with the help of a credit card and can also help you establish good financial habits. Credit cards also offer valuable bonuses, such as the potential to earn cash back, points, and miles, among other benefits.
However, there are also drawbacks to owning a credit card, such as the desire to overspend and rack up a mountain of debt.
In the end, you should consider your own financial condition while deciding whether or not to apply for a credit card. You can be familiar with credit cards previously or brand new to the game. Let’s take a look at when it could make sense to acquire a credit card and when it might not make sense to get a credit card, so you can make an informed decision based on the specifics of your financial situation.
Is a credit card necessary, or can one get by on cash alone? You can manage your finances without a credit card, but having one or two cards in wallet is much more convenient. You can use a credit card to get cash in an emergency, make large purchases, and even prevent fraud. A credit card can be a useful way in establishing a positive credit history if used wisely.