Why Credit Is Important why-credit-is-important

Benefits of Having A Credit Card

Owning a credit card comes with a few responsibilities such as remembering to pay your balance every month, and also brings many benefits. A credit card’s immediate benefits include convenience when you are making a purchase and do not have cash in hand. In the long run, using a credit card will help build your credit score, which will affect how much it will cost you to borrow money in the future. These are just a few of the benefits you will have when using a credit card.


With a credit card, you no longer need to carry bulks of cash in your pocket. Credit cards are accepted by most businesses in the U.S, and, sometimes, are the only accepted payment method. Using Uber or renting a car are two transactions that require a credit card.

Security & Protection

When money falls out of your pocket, it is gone for good. However, if your credit card is lost, you can report this to your credit card provider, and they will help you resolve the problem and take additional steps to protecting your credit card’s security. In addition to these security measures, many credit card providers offer additional purchase protections such as travel insurance, car rental insurance, and for defective or stolen goods.

Record Keeping

If you enjoy keeping track of your expenses, using a credit card can make this process a lot simpler. Credit cards track all of the purchases you make with your card. Every month, a credit card statement will be issued to you. That statement will include how much you spent during the month. You can receive this information on paper or digitally, and check your individual purchases online through your credit card provider’s website. Tracking your purchases can help you save money and make necessary budget changes to reach your financial goals.


Many credit card providers want to reward you as you use their credit card. These rewards can include receiving cash back for your purchases or reward points which can be redeemed for gift cards, gas, and many more items.

Perks of a Good Credit Score

The biggest perk of having a credit card is the ability for you to build a credit history, which will translate into a credit score. You primarily build a good credit score by spending under your credit limit and making on-time payments towards your credit card balance. As we have previously discussed, here is Why You Should Care About Your Credit Score.

There are plenty of rewards and benefits that you will receive when using a credit card. While the immediate benefits are clear, you will certainly thank yourself in the future if you use your credit card responsibly. Once you begin your search for a credit card, you will find that there are countless of credit cards available for you.