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Advantages of Credit Cards

Credit Cards give you lots of advantages.

A safe alternative to cash

When you have your card in your wallet, you don't have to carry cash that can be lost or stolen. If your credit card is lost or stolen, you can report the missing card to the card company. The company will then stop accepting any charges on your card. What's more, you won't be charged for purchases made by someone else. If you make a purchase with a credit card and do not get what you paid for, the credit card company will help you solve your problem.

Builds a good credit history

If you use your card responsibly, you can begin to build a good credit rating for yourself. Later in life, when you need a loan, a lender will want proof that you pay your debts. A good credit card history will help you get your loan. A poor credit history will work against you. Employers look at your credit history, too. Learn more about Credit History.

Bails you out of emergencies

Face it: if you suddenly have to put $400 of repairs into your car, a credit card will come in real handy. Emergencies do happen.

Gives you time to pay

Depending on when you make your purchase and when your monthly bill is due, you can get extra time to save up and pay for what you just charged. If you can pay off the bill ENTIRELY, you are really making the credit card work for you.

Check out the disadvantages of credit cards.