Why are Credit Cards so popular?

Go on, treat yourself. What's stopping you? Show your true colors.

It's easy - just use a credit card. According to APACS, there are over 74 million credit cards in the UK. That's an average of 4 credit cards for every adult in the country. In 2004, consumers in the UK paid for more of their purchases with credit cards than they did with cash. In fact, credit card holders in the UK handed over their plastic credit cards and said 'charge it' 8.1 billion times in 2004.

A Closer Look at the Advantages of Credit Cards

1. Credit Cards Let You Buy When You Want
   Credit cards are designed to let you make a purchase that you can't afford to pay for all in one go. The major advantage of credit cards is that you can buy now and pay later - either in payments made over time, or in one payment at the end of each month. Having a credit card means that you can manage the expense of having your car fixed, even if you don't have the cash at hand. A credit card allows you to replace the broken boiler NOW rather than doing without heat for months while you save up the money for it. It means you can take advantage of an incredible bargain on a new computer while it's on sale, even if you haven't had a chance to save.
   
2. Credit Cards Offer Convenience and Flexibility
   One of the reasons that most people give for using credit cards is their convenience. It's far easier - and safer - to carry a plastic card than it is to carry a wad of cash. Credit cards allow you to make purchases in situations where an exchange of actual cash is impossible - over the internet or the telephone, for instance.
   
3. Credit Cards Offer Security for Your Money
   If your wallet is stolen, it's fairly certain that any cash you were carrying is lost forever. Because credit card companies limit your liability, credit cards offer a more secure way of 'carrying money'. The moment you report your card lost or stolen, the credit card company will stop accepting purchases made on it, and you'll only be liable for a small amount of any charges made against your balance.
   
4. Credit Cards Help Establish and Maintain Your Credit
   The most common reason for loan denial isn't an adverse credit history - it's lack of one. That's why one of the biggest reasons people give for using credit cards is to establish their credit worthiness. When you need a bank loan for a major purchase like a new home or an car, financial institutions look to your history of credit repayments to determine whether they should grant you the loan you've requested. A history of paying your credit cards on time tells them that you are a good risk for loaning money.
   
5. Credit Cards Offer an Easy Way to Track Your Spending and Expenses
   Your monthly credit card statements can be an accurate way of keeping track of your expenses. The detailed statements can help you budget more efficiently, and have records of all your expenses for other purposes.

Choosing the right credit card can be confusing. At www.moneyeverything.com, you can compare all the major credit cards available to find the one that offers you just the right combination of convenience, security and flexibility for you.