5 Reasons To Get a Credit Card

#1: Cash Back

Some credit cards will pay you a percentage of what you spend as tax free cash, which is usually credited to your account once per year.
This is only worth considering if you pay off your monthly credit card bill in full per month – otherwise the interest will outweigh any rewards. If you are looking for reasons to get a credit card, do keep this in mind.

#2: Discounts

Many retailer and airline branded credit cards can offer you discounts, for example, on flights or at in store cafes. Be careful when it comes to travel company credit cards though – many add a surcharge if you want to pay by credit card, so the discount is not as generous as it first seems.

#3: Protection if you lose your wallet or purse

If you lose a wallet or purse full of cash, its unlikely that you will be able to get it back. However, if you are unfortunate enough to fall victim to card fraud, you have legal protection to ensure you don’t lose out financially. Your bank must refund any fraudulent payments immediately unless it has evidence that there is reason to refuse a refund.

#4: Boost your credit score

If you have a poor or limited credit history, you may struggle to access the very best credit deals. But some credit cards are designed specifically to build your credit rating so that you can access better deals in future. Bear in mind that these are likely to have lower credit limits and higher interest rates than other options, so you should make sure you pay the bill in full every month.

#5: Earn Interest

Follow our five steps to earn interest on your shopping:

Step 1: Apply for a card that offers a decent 0% on purchases deal.

Step 2: Set up a direct debit for the minimum payment. If you don’t make at least the minimum repayment each month, you will lose the 0% deal and end up paying interest, defeating the whole object of the exercise.

Step 3: Put your shopping on the card but make sure you keep within your credit limit.

Step 4: Open a Best Rate easy access savings. Each month, put the amount you would have paid off your credit card into your savings account.

Step 5: A month before the 0% deal on your credit card is due to expire, take the money out of your savings account and pay off the full remaining balance on your credit card. This leaves you with the interest accrued in the interim in the savings account on the amount you end up paying off.