Why I use a credit card

This is an article that should help to explain to it's reader the benefits of using a credit card over a debit card or just using ordinary cash:

Benefits of a credit card

Just some of the benefits of Credit cards

Assuming you are good with debt and can control your spending habits, the following are six reasons why you should use a credit card (paying it off in full each month):

1. Cashback - Many credit cards offer cashback. This is free money!!! Why would you not want this? For example you use a credit card that offers 1% cashback on all expenditures. You use this card for one years purchases and end up spending £10,000 on the card. This entitles you to £100 cashback from the bank, for free.  Sometimes you will be asked to pay for a cashback credit card. Read this article to see if it's worth it.
2. Rewards -  In addition to or instead of cashback a credit card can generate points that can be exchanged for airmiles, vouchers or other gifts. Free things!!!!! Sounds great!
3. Section 75 Cover - Essentially this means that the credit card is equally liable for breaches of the contract between buyer and seller. This means you have free cover for undelivered goods, faulty or damaged items. You have the right to refunded if you claim within 6 years. Even if you only pay for the goods in part with credit card, you are covered for the full cost of the item. There will be an equivalent in the USA.
4. Travel Insurance - Free travel insurance is available with some cards.
5. Emergency credit cards or cash - If your card is lost, stolen or damaged then the credit card company replaces your cards or could potentially provide up to £1000 in cash within the hour.
6. Quick loan - At one point in the early stages of his entrepreneurial career, the successful businessman Duncan Bannatyne had £30,000 worth of credit card debt. He needed this to help start one of his businesses and it was a quick way to gain access to a large amount of credit. The key is to pay it off in full each month. Furthermore, using credit rather than the money in your current account delays money coming out of your account allowing your savings to accrue an extra months worth of interest.

What are the reasons not to use a credit card? Throw them out and I'll try to convince you otherwise.

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