What are the Advantages of using Credit and Debit Cards over Cash
As of last year, we here in the UK showed how completely we've embraced the credit card - UK consumers charged more on their credit cards than they bought for cash for the first time ever. And the good news is that despite all the noise about becoming a nation of debtors, studies show that UK credit card users are really a rather responsible lot - most families carry far less debt on their credit cards than the news reports have led us to believe. So what is it that's made us turn in our sterling and notes for little bits of colored plastic - aside from the flashy adverts, of course?
In a nutshell, credit and debit cards offer a number of advantages over cash. As little as twenty years ago, those advantages were outweighed by the fact that not all merchants accepted all the major credit cards. As they've become more accepting, we've come to appreciate all the benefits that carrying plastic allows us.
- The safety factor
Carrying cash can be risky. If you drop it, or have your wallet pinched from your pocket, you can kiss all the cash in it goodbye. Less than 1% of lost or stolen cash is ever recovered. Not so with credit and debit cards. Plastic allows you easy access to your money without the risk of carrying large amounts of cash. And if your wallet is pinched, all you have to do is notify the credit card company and they'll stop honoring it. Not only that, your liability for items charged on your card when it's stolen is limited - and often waived altogether.
Add to that the fact that many of the major cards offer insurance protection on any purchases made with their card, some of them for up to a year after purchase. That means that if anything you purchase on those cards is broken or stolen, they will replace it. When you choose the best credit card for your situation, you'll find that it offers security that cash can't match.
- The convenience factor
When you're carrying a credit card, you've always got the right change on you. Have you ever been at a shop and seen a shirt that you love - but it costs ₤27 and all you've got on you is ₤25? That won't happen when you've got a credit card in your wallet. No need to run to the bank to get another ₤10 - your credit or debit card is good at the till. And it's good at far more tills than ever before. From grocers to filling stations, there are few merchants now that don't accept all major credit cards.
- The credit history factor
One of the key reasons to apply for a credit card is to establish a credit history, and nothing else does it more consistently than a regular record of keeping your credit accounts up to date. Your credit history is the key factor that lenders consider when they decide whether or not to loan you money. If you have an established credit history of on time payments on your credit cards, lenders are not only far more likely to approve your loan for a car, mortgage or any other purpose, they'll approve it at the lowest interest rates that they offer. The best credit card for you is one that reports your on time payments and payment history to the credit bureaux.
Those are just the major advantages of credit cards over cash. When you apply for a credit card at moneyeverything.com, you can compare offers to find the best credit card for your style of spending and personal situation. The best credit card for you may offer cash back rewards, discounts on purchases that you make often or the ability to monitor and control your spending. No matter what you're looking for in a credit card, you'll find the best possible credit card on offer at www.moneyeverything.com.