It comes as no surprise, but credit cards often have a bad reputation. Sure, if used recklessly they can quickly get you into trouble and debt. But when used responsibly, they can offer you a ton of benefits. Here, we outline the top seven advantages of using a credit card.


Build Credit

If you’re just starting out and don’t have any credit, then a credit card can help you build a record of credit. Use of a debit card doesn’t impact your credit score, so it can’t help you build credit. Developing good credit is very useful in the long run, as it can support you in obtaining the lowest interest rates on car loans, credit cards, mortgages and more.


Quickly Improve Your Credit Score

Payment of your credit card is reported each month to the three credit bureaus, so if you pay down your balance and do so on time, then it can quickly improve your credit score. And the longer you use your card responsibly, the more your credit history will build and improve.


Provide Rewards Points

One of the true perks of a credit card is earning rewards points. Whether it’s for groceries, restaurants or travel, you can earn dollars to put toward the things you already spend your money on. Many credit cards provide sign-on bonuses too, so look for this added benefit when choosing a new credit card to suit your lifestyle.


Offer Cash Back

Another nice benefit of using a credit card is a cash-back reward. This simply means by using your card you can earn between one and six percent (depending upon the terms of the card) of your total purchases in a cash bonus. Over the course of a year, this can quickly add up to a stash of unexpected cash.


Represent Safety

Using a credit card is much safer than carrying cash or writing checks. It also adds a layer of protection against scam artists and online hackers. If a fake charge appears on your card, you can simply notify your credit card company and they will handle the matter on your behalf.  


Provide Insurance

Most credit cards today come with certain types of insurance automatically, such as select travel accident insurance, auto rental insurance and roadside assistance, and even extended product warranties. Be sure to do your homework when looking for a credit card that will provide these added protections.


Necessary For Travel

Credit cards are extremely useful for travel, and at times, even mandatory. Nearly all hotels, car rental agencies, and airlines require a credit card to either hold or book reservations, while it’s not uncommon for some fine restaurants to ask for a card to hold a dinner reservation. What’s more, most travel reward cards will wave foreign fees associated when making purchases abroad.


Ready to find the right card for your lifestyle? Visit our website or call a Member Specialist today at 800-422-5852. Insured by NCUA.