Credit cards are one of those things which most people have but most people wish they didn’t need but living from one month to the next can be tough in the modern world whether you need it financially or not. I remember as soon as I turned 18 all these options to buy now pay later on products and sign up to credit cards suddenly presented themselves to me and I did snap up a few like when I bought one of my first ‘proper’ digital cameras from Argos on their Buy Now Pay in Six Months schemes.
While not everyone may need a credit card they’re something we should all have as they help us in so many ways.
Have it there for emergencies
We all know the feeling of it being a few days away from payday and being out of food or needing to fill up the car but you’ve only got a fiver to your name. Having a credit card can help in these emergency situations and as long as you’re sensible with them they can give you that safety net to rely on.
Building your credit rating
Credit is one of those annoying things that no credit can sometimes be as frowned upon as no credit so having a credit card and always paying it back on time and not going over your thresholds can be great at showing credit lenders that you’re good at managing your money. This can be especially good if you have bad credit and are looking to build your rating back up, especially as companies such as Vanquis specialise in helping give credit to those with bad credit.
It helps with mortgage applications
When I went for my mortgage application I had to have a financial advisor (one of the perks of going through shared ownership) but by doing this we were able to talk through all of my finances and he said to me how good my credit rating was from various credit accounts and cards that I had had in the past. A mortgage is just a huge loan and banks need to know that you’re good at paying things back and don’t miss payments so I am pretty sure that I was only granted my mortgage because I had taken out previous credit and paid it back.
The rewards you can get
A lot of credit card companies can give you cashback and other rewards just for buying things through them, for example I have an American Express British Airways card and everything I buy gets me Avois points which I can use to book BA flights. Last year me and my boyfriend got our flights home from Venice pretty much free and I am currently saving up for our next holiday.