It always seems that people have a negative view on credit cards, this point of view is often incorrect. What many people don’t realise is that if you can use your credit card in a responsible way, and with such things as 0% balance transfer, you will be much better off paying with your credit card than with your debit card! Here are the reasons why you should use your credit card instead of the debit
1) Build your credit score
If you are trying to improve your credit score or just don’t have one yet, using a credit card in a correct and responsible way will improve your score. Credit card companies will report your payment activity to credit scoring agencies. Your credit score will be important when you want to take out one of life’s biggest loans, your mortgage. A debit card will not improve your credit score, the use of your debit card will not appear anywhere on your credit report.
2) Earning points
Most of the card rewards out there at the moment work on a point system, a certain number of points are earn for each pound spent. You are able to collect these points and exchange them for rewards or gifts. This means you earn while you spend.
3) Collecting frequent flyer miles
If you’re a keen traveller then you need to get a card that you can earn air miles with. Nearly every airline has a credit available, they offer a great return for every pound spent. Where you really earn your miles is when you signup, the airline cards will almost always give you enough miles at the sign up stage to put you well on the way to a free flight. If you use your card for large purchases then the miles you earn could eventually save you a lot on your flights.
4) Grace period
If you use your debit card to buy something then the money is withdrawn from your account immediately. If you use your credit card to make a purchase the money will not be taken from your account instantly, the money will be taken when you pay your monthly bill. If your money isn’t taken immediately you will earn more money on the balance of your current account. If you’re always using your credit card you don’t need to be keeping an eye on your bank account to make sure that you still have cash.
If you use your credit card regularly it is easier to avoid losing money through fraud. If your debit card is used in a fraudulent transaction, the money will be lost from your account instantly. If you are a victim of fraud with your credit card, you won’t lose money. All you have to do is call your card company and they will cancel the transaction, then you won’t have to pay the money. If your debit card is fraudulently used and money is taken from your account it might mean that you don’t have enough money in your account to pay scheduled bills, like your bill payments or cheques.
Of course a credit card will only be more beneficial if you use it responsibly. Always make sure that you use the right banking methods for you.