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Credit Cards And Why You Need Them

Since the second world war, credit card usage has grown exponentially. Originally, store charge cards were one way to finance purchases, but eventually Bank America and Master Charge cards caught on, joining Diners Club and American Express as the chief bank issued cards out there. Eventually, the Bank America card became VISA while MasterCard became the new name for Master Card. Later, Sears rolled out the Discover Card and things haven't been the same since.

Yes, you need credit cards and just one won't due. If you purchase anything of value, a credit card can offer to you:

A guarantee on your purchase. If you buy something and the product turns out to be shoddy, the credit card network will refund your money and chargeback the funds to the seller.

Carry plastic, not cash. Carrying cash can be dangerous: If it is lost or stolen you are out of luck. Better to carry a card that can provide the protection that you need.

Enjoy deferred payments. Most credit cards allow you to buy now and pay later. Even when the bill arrives, you typically have as long as 25 days before your payment is due.

Get rewarded. Unlike cash, you can receive rewards with your credit card in the form of cash back, airline miles, hotel stays, vacation trips, prizes, and more. Why not make your plastic work for you?

Even to establish credit, you need credit cards for that very purpose. When you go to purchase a home, your credit reports will be pulled and your prompt payment on credit card and installment loans will be duly noted.

Having more than one credit card is wise as it permits you to maintain small balances on each one or pay them off on a regular basis. Give one card to your wife and use the other one for yourself. Or, get a second card for your business and use it to accumulate points, track expenses, and more.

A credit card can also be a great way to keep track of expenses. By putting everything on your MasterCard, for example, you can see where the money goes and download reports to your Quicken program for easy bookkeeping.

Finally, a credit card is backed by the provider; if your card is lost or stolen a new account can be created instantly and your new card issued right away. Now, that is convenience!