Benefits of Using Credit Cards

By Jacob Joseph

Are you considering applying for a credit cards? Outlined below are the advantages of utilizing a credit card for making purchases.

Getting rewarded for your credit card use
Nowadays, almost every available type of credit card has some type of reward connected with it. Offering perks and freebies is the number one method used by credit card companies for soliciting business. They will never go head-to-head, offering lower interest rates. When you pay your credit card balance every month, you will earn a tremendous amount of 'rewards'. On the contrary, if you neglect to make your payments in full, the amount of money you end up paying in interest in likely going to cost you more than of the 'rewards' you receive.

There are many different types of reward credit cards available.
Some of the more popular include:
Cash rebates on purchases - Common annual savings are 1% on all purchases. At the end of the year you will either receive credit for the rebate total or a rebate check will be sent to you.

Airline miles - You will earn one frequent flier mile for every dollar that you spend. Miles are typically worth two or three cents each.

Gas rebates - When you use your credit card for filling up your car, you will receive a discount on gas when you use this type of credit card.

Store and restaurant discounts - These types of credit cards offer savings at participating restaurants and stores when used.

Free merchandise - Many credit cards offer seasonal rewards for card holders.


Some more advantages of using credit cards....

Eliminate stress at the airport - When you use a credit card to buy a plane ticker, it is viewed as non-suspicious by the FAA. As a result of terrorism, using cash to pay for a ticket is looked at as very suspicious and will likely result in you being detained and question.

Protection from bankrupt airlines - Using a credit card to buy an airline ticket offers you protection from losing money in case the airline goes bankrupt.

Stop payment rights - One of the best advantage of using credit cards for making purchases is the ability to make stop payments in the event an item is never received or is broken. For example, say you buy something on the Internet, but you never receive it, you can contact your credit card issuer and initiate a stop payment on the product.

Improving or rebuilding credit - No matter if you have bad credit or no credit, when used responsibly a credit card is one the most effective means of improving credit ratings and scores. Responsible credit card use means making timely payments every month and not going over your available credit limit. You do not have to pay your balance in full, just on time. A good rule of thumb is to not spend more than 15% of your available line.

Extended warranty, theft and damage protection - Many credit cards offer added warranty, theft and damage protection on purchases made with the card.

Jacob Joseph is a financial expert for http://www.starloanservices.com. At Star Loan Services you can apply for credit cards for people with bad credit.