Importance of Credit Cards

If you've been putting off getting a credit card because of high interest rates, you are missing out. While credit cards often do have high interest rates, if you pay off your balance each month, you may never pay a cent in interest. Credit cards have a number of advantages, and are almost required in today's global market due to the following reasons.

Emergencies

• Emergencies are one of the most important reasons that you should have a credit card. If your car breaks down or some other devastating financial scenario occurs, and you do not have the money in your savings, you can use a credit card to temporarily bail yourself out.

Online Purchases

• For online purchases, credit cards are a much faster payment method than checks or cash, since they don't require the legwork and wait time that mailing checks or cash requires.
• Day-to-Day Purchases

• Some businesses will only accept credit cards as payment. Many airlines will only accept credit cards on board aircraft.

Large Purchases

• Since a number of credit card companies offer buyer security, including extended warranties, making large purchases with a credit card offers much more security than if paying with cash or check.

Build Credit

• Using a credit card responsibly can help you significantly improve your credit score.