Credit Cards Have Advantages

There is often an assumption made by people who have gotten into credit card debt that credit cards are terrible. The truth is that they are terrible if you don't pay them off in full every month. If you have the discipline to pay them off each month in full, credit cards have many advantages. A few of these advantages include the following:

Creating A Credit History: Having a credit card that you pay off each month helps create a credit history which will improve your credit score. An improved credit score will allow you to get loans for a car or house at much better interest rates saving you money.

You Get An Interest Free Loan: from the time you buy something with a credit card until the time you pay off the credit card, you get an interest free loan.

Your receive Damage and Loss Protection: When you purchase something with a credit card, you are protected from damage or loss. You do not receive this protection when you use cash.

You Get Theft Protection: If an item that you purchase gets stolen within a specified period of time, your credit card often covers the replacement of the stolen item.

These are just a few ways that credit cards can be advantageous. The key point to remember is that this is only the case if you pay of the balance of the credit card each month in full.