Even through you can find some problems of having a bank card, such as late fees, link home high interest, Etc., it still has a whole lot of advantages in having one. I will be going over a lot of the advantages of owning a credit card in this particular article.

The advantages of having a credit card are the free things they give out to encourage the user to use that card. Credit cards companies do not like to compete in lowering their rates of interest, so instead they give out free things, which comes out a great deal less costly than lowering rates of interest.

The free thing they give out comes in several different forms, such as cash rebates. Whenever you make a purchase on any item, you can get 1% on regular purchases, and some offer three to five percent for buying gas and shopping at a supermarket. As soon as you reach $50, they are going to send you a check, and $250 is the maximum you can earn in over a year.

Discount on future purchase (this one is performed by stores). The way this works is, if you sign up for a card at the store, you will get discounts on future purchases. And bonus points for using the card, that you just might get a gift certificate.

Frequent Flyers - You get miles for every dollar you spend, which will result you getting free trips, and upgrade your seat. But don't think that the miles mean, the number of miles it can fly to. For example it will not mean if you have five thousand miles, you may fly five thousand miles anywhere in the country, it will take 45,000 miles to fly to some part of United States. The miles you get are usually worth few cents for every dollar. A whole lot of airliners are getting strict, if your account is inactive, you will lose your miles. Also of course, you will need to ensure to book in advance.

Point Reward - For every dollar you spend, you could possibly get 1 or 2 points. When you reach a specific amount of points, you can get free merchandise, which ranges from free tickets, DVD to electronics. Some even offer free nights at a hotel or upgrades.

When your using your credits card, you may be more organized financially. You may have a complete record of everything, that may be very helpful during tax time.

You can dispute items with credit-card. If you purchase something over the web or mobile phone, and also you never received it, you can dispute it, which can result you getting your hard earned money back. You can't do that with debit card or checks.

Increased credit rating - whenever you use your credit-card and pay your balances on-time, this can help you build credit. Whenever you have good credit, you may get good rates on mortgages, auto loans etc . . . But if you pay your payment late (more than two to three months late) it can lower your credit rating.

Many credit card have extended warranties on some purchases. If you break your purchase or someone steals it, and if you-still possess the original receipt, the card will repair or replace the item for you. But they do have complex rules, which is time intensive, such a getting police report, estimate on item, filing out paperwork, phones calls, etc..