We shouldn't overlook some benefits that credit cards provide. By law the credit card supplier must offer additional protection to the consumer using their card. This can be reassuring if you are spending a lot of money with a supplier you are not familiar with.
If you have problems with a supplier of goods or services and you paid using a credit card then the credit card company is held responsible along with the seller for the supply of the goods or services. This means that if the supplier were to go bust before they have supplied you with the goods you ordered then the credit card company should either reimburse you the payment or supply the goods ordered. This would usually mean you should not lose money.
There are obviously some conditions to this and you should check to establish what the current legal situation is. Always consult with a qualified professional before taking any action where you consider the legal or financial situation to be important. Generally speaking, it seems to be if an item costs more than £100 you would be covered by the credit card company.
The other great benefit of credit cards is the flexibility of both obtaining credit and then repaying it. You have a constantly available credit facility in your wallet and if your car breaks down or you need to employ a plumber to repair your pipes in your home then you don't need to wait until you have the cash.
Nor do you have to repay that debt over any specific timeframe or payment plan, other than making the monthly minimum payments you can decide how you repay the debt.
One other benefit of using credit cards is that if you can afford to pay off the whole outstanding balance by the payment date required then you will have had a period of interest-free credit on your purchases. You could also have what is known as a cashback credit card whereby you would also be paid a percentage of the amount you have spent. Next...> Disadvantages Of Credit Cards
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