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Good Uses for Credit Cards

March 24th, 2011

credit-card-portfolio.jpgSome consumers avoid using credit cards because of the fear of getting buried in high interest credit card debt. If you use your credit card with restraint, it can not only help you build a stronger credit rating, which is helpful for obtaining a mortgage or car loan, but it can also give you financial benefits. Consumers should be able to identify the best uses for a credit card in order to reap the maximum benefit credit has to offer.

Monthly Expenses

Your monthly expenses include things such as food and gasoline. These are items you have in your monthly budget that you would normally pay for in cash. You can take advantage of credit card cash back programs or other purchasing benefits by using your credit card for those monthly purchases instead. Set the money aside in a savings account for 30 days and allow it to collect a little interest, and then pay off the credit card bill in full when you get it. You will get the benefits of having a credit card without the revolving debt.

Emergencies

Credit cards are excellent sources of funding in emergency situations. For example, if your car breaks down and requires a repair that will cost several hundred dollars, you can use your credit card as emergency funding. If your car breaks down while you are traveling, or if you are stranded in a storm, a credit card will allow you to rent a hotel room and get out of the elements while you get your vehicle repaired or ride out the storm.

Traveling

When you are ready to travel on business or vacation, you should consider using your credit card for some of your expenses. You need a credit card to rent a vehicle and reserve a hotel room. You can also keep track of all of your travel expenses by using your credit card statement, and that will help you to better plan your next trip and reduce travel costs. Credit cards that include frequent flier miles as part of their customer bonus program can also help you to save money by awarding you airfare discounts.

Purchase Protection

Using a credit card to make large purchases such as a television or major appliance gives you protection if the item turns out to be damaged. If you bring the item home and it turns out to be defective, then you would normally contact the retailer from where it was purchased. But if that retailer will not assist you in getting the unit repaired or replaced, then you can contact the credit card company to stop payment. Some credit card companies also offer full protection programs that will help you with repair or replacement for items you buy on the card without having to go through the retailer.


This article on good uses for credit cards was supplied by George N. Root from Constant Content.

Related articles:

How to Use Credit Cards to Increase Your Fico Score
How to Get Easy Business Credit Cards


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