http://www.debts.org/index.php en info@debts.org Copyright 2008 2008-12-01T15:28:00+00:00 http://www.debts.org/11/index/credit_card_benefits/ http://www.debts.org/11/index/credit_card_benefits/#When:12:42:00Z Life is expensive so we often need a little help from our friends, especially our plastic ones. Credit cards provide you with the convenience of a bank loan but with much more flexibility. Credit cards can be used in emergencies or simply for life’s little luxuries. More... A credit card is a clean, quick and smart way of paying for groceries or buying train tickets when there are 50 impatient commuters at your back.Done right credit cards are the cheapest way to borrow money. With several key advantages, a credit card can:Give greater spending flexibility Improve your credit rating; and Provide cash bonuses and travel points.Credit card benefits – Spending powerA credit card allows you to make a variety of purchases and spread the cost over a period of time. Previous charge cards such as Diners Club were unlike credit cards in that balances could not be ‘carried over’ but were paid in full at a set date, ie end of month.A credit card allows you to pay a minimum rate on any balance, which can afford you time to find the extra money for your purchases. For this reason credit cards are particularly convenient over Christmas or for those two weeks in the sun.Online shopping for booking flights or making purchases requires a credit card and is useful for this reason alone. However, with the advent of pre-paid cards, shopping online will be made easier for the under 18s and those without credit cards – but even so it remains a poor alternative.Credit card benefits – Credit reportsA credit card can enhance your credit score just by owning one. It shows you are worthy of credit. Owning two is even more beneficial as it demonstrates you are considered trustworthy by more than one lender. (It should be noted however that your credibility does not run directly in line with the amount of cards you possess.) To enhance a credit score, it’s advisable to use your credit card regularly instead of once every few months. Using your credit card often creates a history of credit, which is good news for your credit rating. It also means you will receive fewer calls checking on the validity of a purchase. Ironic as it may seem, the best way to repair bad credit is to use a credit card sensibly.Credit card cashback/incentivesCredit card companies offer numerous incentives such as cashback offers. Most cashbacks are calculated in the region of 0.50% to 1.00% of spending, with maximum spending limits enforced.Shopping rewards and point systems (eg, at your local supermarket or petrol station) often run counter to interest rates or credit limit. For example you may wish to take advantage of an air miles incentive and opt for a card that offers travel points but suffer a higher interest as a result.Note: Some incentives are only available for a set period of time or subject to restrictions. To get full value of what your card entitles you too, make sure you are familiar with the terms and conditions. Cashing in on the rewards can be done but it takes a certain amount of savvy and commitment. Credit card benefits 2007-11-14T12:42:00+00:00