Why Everyone Should Have a Credit Card
There are many advantages to having a credit card. First of all, a credit card can help build your credit history. Credit card companies regularly report to the three credit bureaus. Paying your credit card on time will reflect positively on your credit score. Also, it is important that you pay off your balance in full every month. Do not charge what you will not be able to pay off. Cardholders who demonstrate financial responsibilities will be rewarded with lower interest rates on other loans such as car notes and home mortgages. Young people can take advantage of credit cards to start building their credit for the future.
Credit cards can also be used to simplify your accounting. If you run a small business, you will be very grateful for your end of the year itemized reports. Credit card companies typically categorize all your expenses for you automatically. Charges that are made at restaurants are categorized accordingly while charges made at an office supply are categorized under office supplies. This is very handy when you need to determine how much you have spent on a particular expense so that you can deduct it from your income tax. If you spent $5000 at restaurants, your yearly itemized statement will show exactly where and when the money was spent.
Credit cards also offer you added security if you loose the card. Should you loose a wallet full of cash, chances are you will not see it again. However, with credit cards, all you need to do is call the lost or stolen hotline, cancel the card, and have another one reissued to you immediately. I remember traveling to California and loosing my American Express Gold Card at the House of Blues. Within a couple days I had a new card sent to me. Some rewards credit cards even offer additional travelers insurance in case you loose your luggage. Credit cards also offer consumers protection on certain purchases. Some card issuers will even go as far as offering insurance for a specific amount of time in case your purchase is stolen or damaged.
Another advantage to having a credit card is the ability to make purchases on line or over the phone. Most online commerce websites accept only credit cards to make purchases. Amazon.com is a classic example of a commercial website that requires shoppers to have a credit card in order to make purchases. New technologies have made it safer for consumers to use their credit cards online. Most online shopping sites use SSL secured technology to encrypt confidential data being sent back and forth between computers. This makes it almost impossible for hackers to steal your card information.
Credit cards also come in handy during emergencies. Emergencies always creep up on us and demand that we cough up cash fast. A car repair can easily cost more money than you have on hand. You will not be able to take care of important tasks without the use of your vehicle. However, with a credit card you can pay for the repair expenses immediately. Then you will have time to pay off the debt to your credit card company. If you were to have to use the only cash that you have on hand to fix your car, you would be without other necessities until you are able to make the money back. A credit card will allow you to fix your car and not be without groceries or rent money.
Credit cards when used responsibly can make any ones life much easier. If you are on vacation and loose your card, not to worry, you can always cancel and have a new one sent right away. Credit cards can also help you out of a bind or allow you to purchase the new television set or purse that you have always wanted. Credit cards can also help build your credit if used properly. In modern times, credit cards have become an integral part of our day to day lives.
There are many advantages to having a credit card. First of all, a credit card can help build your credit history. Credit card companies regularly report to the three credit bureaus. Paying your credit card on time will reflect positively on your credit score. Also, it is important that you pay off your balance in full every month. Do not charge what you will not be able to pay off. Cardholders who demonstrate financial responsibilities will be rewarded with lower interest rates on other loans such as car notes and home mortgages. Young people can take advantage of credit cards to start building their credit for the future.
Credit cards can also be used to simplify your accounting. If you run a small business, you will be very grateful for your end of the year itemized reports. Credit card companies typically categorize all your expenses for you automatically. Charges that are made at restaurants are categorized accordingly while charges made at an office supply are categorized under office supplies. This is very handy when you need to determine how much you have spent on a particular expense so that you can deduct it from your income tax. If you spent $5000 at restaurants, your yearly itemized statement will show exactly where and when the money was spent.
Credit cards also offer you added security if you loose the card. Should you loose a wallet full of cash, chances are you will not see it again. However, with credit cards, all you need to do is call the lost or stolen hotline, cancel the card, and have another one reissued to you immediately. I remember traveling to California and loosing my American Express Gold Card at the House of Blues. Within a couple days I had a new card sent to me. Some rewards credit cards even offer additional travelers insurance in case you loose your luggage. Credit cards also offer consumers protection on certain purchases. Some card issuers will even go as far as offering insurance for a specific amount of time in case your purchase is stolen or damaged.
Another advantage to having a credit card is the ability to make purchases on line or over the phone. Most online commerce websites accept only credit cards to make purchases. Amazon.com is a classic example of a commercial website that requires shoppers to have a credit card in order to make purchases. New technologies have made it safer for consumers to use their credit cards online. Most online shopping sites use SSL secured technology to encrypt confidential data being sent back and forth between computers. This makes it almost impossible for hackers to steal your card information.
Credit cards also come in handy during emergencies. Emergencies always creep up on us and demand that we cough up cash fast. A car repair can easily cost more money than you have on hand. You will not be able to take care of important tasks without the use of your vehicle. However, with a credit card you can pay for the repair expenses immediately. Then you will have time to pay off the debt to your credit card company. If you were to have to use the only cash that you have on hand to fix your car, you would be without other necessities until you are able to make the money back. A credit card will allow you to fix your car and not be without groceries or rent money.
Credit cards when used responsibly can make any ones life much easier. If you are on vacation and loose your card, not to worry, you can always cancel and have a new one sent right away. Credit cards can also help you out of a bind or allow you to purchase the new television set or purse that you have always wanted. Credit cards can also help build your credit if used properly. In modern times, credit cards have become an integral part of our day to day lives.
Labels: Business Credit Card, business credit cards, small business credit card
Credit Card / Financial news blog post by Todd Holliday at 6:19 PM 