Advantages of Credit Cards

Topics: Credit card, Credit history, Credit rating Pages: 2 (473 words) Published: October 2, 2006
Credit cards have affected people's lives in the 21st century. Many people use credit cards as an identification tool. In my opinion, credit cards have many benefits if they are used wisely. Credit cards offer a safe alternative to cash, and an opportunity to develop a good credit rating. They also provide the consumer with more time to pay for his/her purchaser.

Credit cards are a safe alternative to carrying 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, and you won't be charged for purchases made by someone else. For example, when I travel to different countries I don't have to worry about carrying cash with me. Just a couple of credit cards can cover all my expenses during my stay. In addition to that, carrying a credit card is safer than carrying money. People can steal money and use it, but if they steal a credit card, you can easily close your account with one call.

In addition to its safety, credit cards can build a 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. For example, my brother has a dozen credit cards because he wants to build a good credit history for himself. He always encourages me to do the same thing. He believes a good credit rating will help him finance a house or car.

Last but not least, credit cards give you time to pay for purchases charged to them. Depending on when you make your purchase and when your monthly bill comes due, you can get extra time to save up and pay for what you charged. In my case, since I got my credit card, I can buy whatever I want and pay for it...
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