For most Americans, credit cards are a fact of life. While the amount has dropped somewhat since the recession of the late ’00s, credit card debt totals $935.6 billion, with adults between the ages of 18 and 65 carrying an average debt of $4,717.
Credit cards have gotten a bad reputation, but that has more to do with people’s inability to use them wisely. Here are some of the financial benefits you can enjoy with careful use of credit cards.
Benefits Of Careful Credit Card Use
Build a Solid Credit History
Some diehards still hang on to a cash-only way of life, but today it’s next to impossible to get along without credit, especially if you want to buy a house or a car. Owning a few credit cards and keeping them in good standing demonstrates your financial worthiness to potential lenders.
Loss and Theft Protection
If your wallet is lost or stolen, any cash it held is gone for good. On the other hand, when you report the loss of credit cards, you are protected against unauthorized purchases and the company will issue you a new card with a new number.
Automatic Tracking
Saving receipts can be cumbersome and inefficient. When you use a credit card, all transactions are conveniently tracked and reported to you on a monthly basis. You can even get up-to-date information by accessing your account online. This is particularly helpful if you need itemized summaries for work or tax purposes.
24/7 Access to Emergency Cash
While you may have a general idea how much cash you need on a day-to-day basis, emergencies can crop up at any time. If your car breaks down or you get stranded in an out-of-town airport, you can make alternate arrangements without fear of being short on cash.
Interest-Free “Loans”
This is where financial self-discipline comes into play. You can take advantage of a credit card’s grace period to make a purchase and leave the funds in an interest-bearing account until it’s time to pay the bill.
Protected Purchases
If you make a cash purchase and the seller doesn’t fulfill his end, you could be stuck in a never-ending battle that may ultimately not even be worth the money you’re pursuing. Credit card companies have an appeal process where you can dispute a charge and they do the legwork for you, processing a credit to your account if they find in your favor.
Online Shopping
The Internet allows you to shop with vendors across the country and around the world. In addition, many online retailers offer Internet-only discounts and sales. Using a credit card is the only way you can take advantage of these bargains.
Daniel R. Gamez, an attorney focusing exclusively in debt relief, is licensed to practice in all state and federal courts in California and Texas. Mr. Gamez owns and operates the Gamez Law Firm in San Diego, CA. For more information, please contact Daniel Gamez at 858-217-5051, daniel@gamezlawfirm.com or use our online contact form. Stay updated with the latest debt relief tips by following on Facebook and Twitter!