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3 Advantages to Using a Credit Card


Credit cards accrued a somewhat dented reputation following the credit crunch, with people borrowing beyond their means and in some cases finding themselves in financial difficulty. As a result, it is now harder to access this type of credit and many credit card borrowers have seen the rate of interest they are paying rise. Despite these changes there are still many advantages to credit card borrowing. Here are a few to ponder:

Managing a card can help build your credit status

If you have a bad credit rating, or no experience of credit, managing a card wisely can pay dividends. Showing that you can borrow responsibly without difficulties will improve your access to credit, which may help you in future situations – for instance when you apply for a mortgage. Make sure you pay your monthly payments on time and above and beyond your minimum payment levels and you will be seen as a lower credit risk.

Spend now pay later

The ability to buy things at the time you first see them, rather than waiting until pay day, is a distinct advantage. With credit cards, like a prepaid Mastercard, you don’t need to worry that your size in the dress of your shoes or dreams will sell out before you have the money for them and you also have the option to buy big ticket items such as televisions and pay for them over a period of time.

Don’t have to cost the earth

If done correctly, purchasing on credit cards doesn’t need to cost you any more money than paying by debit card and using the money in your basic account in most cases. If you pay your full balance each month in full you will not accumulate interest and you will benefit from the protection of paying on card. One thing to look out for however is annual fees. Some cards charge a fee just for holding a card whether you spend on it or not, so make sure you check the small print to see if you are liable to pay one.



My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

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