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Credit Card Benefits

Updated on January 11, 2013

Do You Have A Credit Card?

A credit card has many benefits and it seems that these days it is a must have for your wallet. While they can be dangerous at times, they are also very beneficial for the responsible consumer. Not only can it help you get to places you have never been, but it can also help you out in a tight situation.

While some may tend to think of credit cards as dangerous, tempting them to spend money while there is no money to spend. The responsible person can gain many benefits, even if it means only having one credit card.

Got money?

If you don't have the cash, don't put it on the card. Rule of thumb, pay off your debt immediately.
If you don't have the cash, don't put it on the card. Rule of thumb, pay off your debt immediately.

Do You Need Credit? Credit Cards Will Help Get You Started

In today’s society, you are rated by your credit. Having too much or none at all can be very damaging. Therefore, you need to keep yourself in good credit standing. When you are first starting out, one of the best ways to start building your credit is to get a credit card.

The first credit card you get will be exciting, but you need to be aware of the power the plastic holds. That plastic card can cover you in debt. Yet, if it is used properly, it can also create a good credit history for you.

The key to using credit cards is to make sure you pay off your debt immediately. In other words, if you don’t have the cash to spend, the rule of thumb is you shouldn’t be putting it on the card. If the card is paid in full each month, it will help avoid high interest, late fees, and reoccurring debt. It will also put you in good standing with other credit companies, making it easier for you to get a loan in the future!

Today's world revolves around credit. Without credit, you will find so many things out of grasp. Getting a credit card and using it wisely is one of the best ways to start building your credit.

Down on Luck? Credit Cards Help With Sticky Situations

While using your credit card because you have no other money is not always the wisest choice, sometimes it can help out when you are in a bind. Credit cards can become your best friend when you are having vehicle issues, house issues, or maybe just issues. It can get you out of a bind when you need it the most. If you don't have the extra cash, and you don't have a credit card, you might find the situation seemingly more stressful.

That being said, using credit cards just to use credit cards, should not be a way of life. But on the occasion, if times are hard and you need groceries on the table, a credit card will help you out. Just make sure you catch up as soon as possible. A mountain of debt can be hard to get over if not resolved in the early stages.

The Sky is the limit...

A credit card will give you the ability to make reservations, so you can enjoy your vacation without limitations.
A credit card will give you the ability to make reservations, so you can enjoy your vacation without limitations.

Travel With Your Charge Card

It can be a hard lesson to learn if you only have a debit card when you go on vacation. Debit cards are issued through the bank and are usually a direct link to your account. While you could have a big chunk of change in your account, the bank may put a limit on how much you can spend. The average limit is $500 in debit purchases or only $300 withdrawn from the ATM. If you spend more than that, they might shut your card off for excessive purchases.

In personal cases, my husband was not allowed to exceed a certain limit on his card regardless of whether he notified the bank first. In other cases, I have personally had my card shut off due to excessive spending, which can be very embarrassing when you know there is money in the bank, but your card gets declined. These experiences can be avoided if you have a credit card. Once you have maintained a good credit, you will also be able to hold a higher credit limit.

In addition, there has been times that our debit cards have been shut off because of excessive purchases that came across as suspicious. For instance, if you are going on a road trip, and you purchase gas several times in several different states, you might find yourself empty handed at the pump. I know, because it has happened to us. Nothing that a call to the bank can't fix, but having a credit card might be a good idea.

When traveling, a credit card is also helpful, and almost necessary, for renting a car. While you may be able to rent a vehicle with a debit card, the car rental company will usually place a large hold on your finances. If you have saved up for a vacation and are suddenly unable to access the money you planned, your whole vacation could be ruined.

In addition, there have been cases when car rental agencies just wouldn't accept a debit card, regardless of whether it has the Visa or Mastercard Logo. Can you imagine finding this out when you are miles away from home. In cases like this, it might just be better to have a credit card in your wallet.

A Tool In Your Wallet

These days, it seems you can't do much if you don't have a credit card!
These days, it seems you can't do much if you don't have a credit card! | Source

Credit Card - A Necessary Tool

Credit Cards are a great tool. They have several benefits and as long as they are used properly, they can be invaluable.

While some people may think their debit card is just as good, credit cards are able to do far more. Credit cards will hold you liable for a smaller amount if your card is ever stolen. They will also be accepted for large purchases. They can also be used to reserve certain items, like hotels, vehicles, or tickets, until the purchaser has arrived.

In some cases, they will be a lifeline. If you are tight on cash, they might make you through a tough situation. The key to credit card use is to pay it off as soon as possible so you don't end up spending more than what the purchase was originally worth.

However, if you are not a responsible credit card holder, racking up credit card debt can be an expensive lesson. However, they still make a great tool! They come in very handy for scraping your windows off after that first snow or frost, especially when you forgot to put your snow brush back in your vehicle!

How about you?

Do you have a credit card?

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More information!

Credit Cards Offer False Security - These little plastic cards can hold lots of power if used incorrectly. Credit cards can be beneficial, but does the benefits outweigh the risks. They can offer a false security blanket for those who aren't mindful!

Money doesn't grow on trees... unless you plant your own - According to Chinese Myth, the owner of a money tree will have good luck and fortune brought upon them. But, finding a money tree will be difficult. So plant your own!


About the Author

Stacy Harris, also known as Barbergirl28, is a wife of 12 years and a stay-at-home mom of two beautiful girls and one handsome little boy. After high school, she joined the Army to become a photojournalist. To this day, she continues to have a passion for writing and photography. After leaving the military, she obtained a license in Cosmetology and also studied Massage Therapy. Her passions include writing, photography, cooking, crafts, health, and fitness. Currently, she is working on a book and freelancing at Hubpages.

If you would like to earn money by writing for Hubpages, click here to sign up.

If you would like to check out her blog Ramblings of an Undiagnosed Mad Woman, click here.


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    • barbergirl28 profile image

      Stacy Harris 5 years ago from Hemet, Ca

      @TIMETRAVELER2 - It really is kind of a catch. We need a credit card for a lot of things... especially like renting a car. That can hurt when a person doesn't use them responsibly. But if a person avoids credit cards, it hurts us just as much. I wish there was a different way because I would rather not have a credit card if I could get away with it!

    • barbergirl28 profile image

      Stacy Harris 5 years ago from Hemet, Ca

      @MelChi - We used to have credit cards and then I got rid of all of them because we kept finding ourselves in trouble with them. Sadly, my husband likes to spend and I like to save. We often but heads on this but it is something we need to figure out how to get back into in the future! :)

    • TIMETRAVELER2 profile image

      Sondra Rochelle 5 years ago from USA

      This is good info, but personally I think the great majority of people have no clue as to how to properly use credit cards and the result has been disastrous both for them and our economy. It's easy to say that people should be responsible, but unfortunately, most people aren't, and that's the problem.

      Credit cards are nothing more than a financial tool which when properly used can be very helpful. I have written on this topic myself here on HP so have done substantial research.

      Nicely done article.

    • MelChi profile image

      Melanie Chisnall 5 years ago from Cape Town, South Africa

      Stacy, this is an excellent article which I think everyone should read. It's so easy to get swept up in a spending spree with credit cards, but at the same time as you point out - there are times when you need them. My husband keeps all the cards in our family because he's very good with that sort of thing - luckily. Fantastic advice, thanks for sharing! :)

    • barbergirl28 profile image

      Stacy Harris 5 years ago from Hemet, Ca

      @seigfried23 - I was actually just reading this book that was talking about not having any credit cards. I still find it hard to believe that if you have good credit, and you are financially responsible, that a person wouldn't see the benefit of having one. It definately can be a temptation to live outside of your means but it is a godsend for traveling, especially if you need a rental car. I guess it is a matter of the person in charge. Stay responsible is always the key!

    • seigfried23 profile image

      seigfried23 5 years ago

      Great info. Credit cards get a bad rap sometimes - as well many of them should - but the fact is, we need them because of the way things are set up. They protect you in many ways and help you qualify for things you couldnt otherwise get; staying responsible is the key.

    • barbergirl28 profile image

      Stacy Harris 6 years ago from Hemet, Ca

      I have learned my lesson way to many times. Unfortunately, today you almost always need a credit card. We do a lot of traveling and we have found without a credit card, trying to rent a car is next to impossible. How degrading is it when you have to ask your parents to use their credit card even though you have the cash on hand! Sad how credit really works!

    • Jangaplanet profile image

      A Ercoli 6 years ago

      You're right , credit cards do help build more credit, though they got me in trouble quite abit. Yet i never understood why -in order to get credit ,whether it be credit cards or loans, you need to always create debt in order to prove to them your a good payer? Great hub , interesting.