When it comes to personal finances, credit cards receive lots of bad press. However, these can provide positive effects to the right people who make it into a fantastic financial tool.

Of course, you still have to pay your credit card balance each month so goes the assumption.

And what happens if you fail?

Your debt and its interest will turn your credit card into a nightmare for you instead of being an advantage. So if you know that you have the right discipline to pay off your balance every month, here are 15 reasons to answer your question on “why get a credit card”.

Boost Credit Score and History

If you are planning on getting a house or any loan in the future, it’s best to establish a strong credit history and increase your score. It will help you pay less in your future payments. Not only that but a strong credit score might just mean a low-interest rate for your mortgage. That’s saving thousands of dollars!

This also applies to insurance products, auto loans, and job applications. A good credit score shows that you are a responsible adult and can mean significant savings in your life.

Internet Purchases

If you are fond of buying stuff on the internet, you may have noticed that most ask for credit card payments. And often, you’ll need to pay more for the same thing if you didn’t have a credit card. That’s unfair, right?

Zero liability protection

There are credit cards nowadays that offer zero liability for any purchase that’s unauthorized. So when you find out that the seller did not ship the item you paid for, a merchant overcharged you, or you got a purchase on your card which you didn’t make, the provider of your credit card is going to be the one responsible for it. So why should you ever use cash?

Interest-free lending

Look for the right credit cards which provide the cheapest ways to borrow money. If you have a current credit card debt, you can use another credit card to pay it down with as low as zero percent balance transfer. That’s pretty awesome, right? Or you can use your credit card to purchase products at a low-interest rate.

Related: How to Attract More Money In Your Life in 8 Ways

Earn free money

There are lots of rewards nowadays when using credit cards. You get to earn points, cash or miles then redeem them. So why should you even think about shopping with cash or debit card when you can easily earn rewards, cash backs and miles for free?

Free protection

Many people pay for trip cancellations, out-of-the-country medical insurance, baggage, trip interruption, car rental, accidental death, or extended warranty insurance which costs hundreds of dollars every year. Now, credit cards have free insurance packages included, so you get free protection! That’s more than getting rewards and miles, don’t you think?

Cheap foreign exchange

Stop buying dollars at your bank branch or foreign exchange booths in hotels and airports. If you have the right credit card for your purchases abroad, you may get one of the lowest rates for foreign exchange without any commission. Besides, you can also avoid risking losing your cash when you travel if you have zero liability protection and the cheapest exchange rate for a foreign purchase. How great is that?

No other payment options

There are times when there’s no other way for you to buy online than to use a credit card. In some cases, a debit card doesn’t work, especially when renting a car or booking a hotel room. Regardless of these, it is essential that you have a credit card in cases where debit or cash is not accepted. It is even recommended that you get two credit cards in cases where one is declined. Plus, it’s easier to purchase using a credit card.

Related: 10 Brilliant Ways to Save Money at Home

Signup Bonuses

Today, you get all kinds of perks with a credit card. One of these is signup bonuses.

Those who have good credit, usually are approved for credit that has $50 up to $500 worth of signup bonuses. There are also other cards that thank their new users by providing them with a huge number of reward points.  In comparison, you don’t get any of these with debit cards.

Keeping Vendors Honest

Let’s say you hired a carpenter who helps build your furniture. After a few days, you noticed the furniture had problems. What should you do? It’d take months with all the process involved to clear up the issue. Plus, the carpenter already has your money.

With a credit card, fraud is discouraged among vendors. If you get into an issue, the card issuer can help resolve it. Plus, you can get your money back easier. 

Grace Period

Compared to a credit card, your money is lost and gone once you make a purchase using a debit card. On the other hand, your money will remain in your checking account up until the moment when you go and pay your credit card bill.

This way, your money’s time value will increase your wealth. You get to earn more money during the grace period of your credit card. Also, you don’t need to watch your account balance in the bank closely every time you pay using your credit card.

Track Your Expenses

What most people love about credit cards is how it can help track your expenses with ease via your monthly statements and internet banking of your bank. You can see where your money is going and what you’re spending it on. And by the time you are tallying up your expenses, you have a paper trail to help you.

All in all, when you have a credit card, it is important to pay your balance in full every month. Never use your card when you need a cash advance. Always set up automatic repayments so you can avoid late payment fees. Lastly, stick to your budget and respond to capital one mail offer. And that’s it! Do you want to get a credit card now?

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