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In almost all purchases most people use cash. But there are those select few who use credit cards to buy goods. Why is this so? Knowing that there is an additional interest when you pay late, these people still keep on using these plastics to acquire merchandise, equipment, furniture and even books. So what is with the interest in credit cards, and why do so many people use them to buy everything in sight? How should people use credit cards to estimate credit scores? Here are some of the reasons why to some people using a credit card is a must. A credit card builds up a good rating- You are immediately qualified or eligible for a loan when banks know how good your credit card standing is - with the lowest possible interest rates and no security deposits. Of course, you always need to be on time when paying for your purchases. A credit card is quick and easy to use- With just a swipe of a machine, you have already paid for the goods that you buy. Of course you need to contend with the long lines at the check-out counter but still, nothing beats paying for your items in just a flick of a hand. A credit card replaces cash on hand- You don’t need to carry around cash with you - which can be stolen or misplaced. You only need your credit card to make these purchases and for estimating credit score as well. A credit card is used when you pay your bills online- You don’t have to stand at the long queue outside the billing office. Whether you are paying for your bills and utilities or paying for your monthly insurance, all you need to do is to go online and with just the click of a finger, you have already paid for your miscellaneous fees. A credit card is perfect for spending reports and accounting- All the purchases you did for one month is all doled up in one statement and in one bill - your credit card statement. There are also some credit card companies which categorizes all your expenses so you can take note of the expensive items that you make. A credit card is great for frequent travels- When you use your credit card to make purchases you are also earning air miles which you can use to spend on free dinner dates, sports gear and different flights from around the globe. All of this for free - that is, if you travel a lot. A credit card takes Visa- The coffee shops, the supermarkets and the groceries all take Visa. This is accepted worldwide, especially if you are out of the country so often. A credit card is a safety net- Having a credit card creates an easier escape from fraud. When you notice suspicious purchases in your account you just notify your credit card company and you never pay for these losses while your company solves the problem. A credit card allows you to buy more time- There is a grace period for credit card holders. When you purchase goods you don’t have to pay for these instantly. You only need to wait for a month and earn money in the process so that you’d have the money when your credit card statement arrives. Joy is an active blogger who is fond of sharing interesting finance management tips to encourage people to manage their personal finances. More specifically, she advocates that people should check credit report regularly.
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