Even through you will discover some problems of having a credit-card, for example late fees, 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 within this article.

The advantages of having a credit card are the free things they give out to encourage the user to use that card. Cards companies don't like to compete in lowering their interest, so instead they give out free things, which comes out a whole lot cheaper than lowering interest.

The free thing they give out comes in many different forms, for example cash rebates. Whenever you make a purchase on any item, you can get 1% on regular purchases, and some offer 3 to 5 percent for buying gas and shopping at a supermarket. As soon as you reach $50, they will send you a check, and $250 will be the maximum you can earn in annually.

Discount on future purchase (this one is performed by stores). The way this works is, if you sign up for a bank card at the shop, you will get discounts on future purchases. And bonus points for using the card, which you could get a present certificate.

Frequent Flyers - You get miles for every dollar you spend, resources which can result you getting free trips, and upgrade your seat. But do not think that the miles mean, the range of miles it can fly to. For example it doesn't mean should you have five thousand miles, you may fly five thousand miles anywhere in the nation, it can take 45,000 miles to fly to some part of USA. The miles you get are usually worth few cents for every dollar. A great deal 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 can get one or two points. When you reach a particular quantity of points, you will 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 can be more organized financially. You may have a complete record of everything, that may be very helpful during tax time.

You may dispute items with credit-card. If you purchase something on the internet or smart phone, and you never received it, you can dispute it, that can result you getting your hard earned money back. You can't do that with debit card or checks.

Increased credit rating - when you use your credit card and pay your balances on time, this is going to help you build credit. When you have good credit, you can 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 score.

Many 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 bank card will repair or replace the item for you. However they do have complex rules, which is time intensive, such a getting police report, estimate on item, filing out paperwork, smart phones calls, etc..