Six Reasons Credit Cards Need to Stay in Your Wallet

We are hearing a lot of people who are getting rid of their credit cards and accounts all together. They have had it with the rate increases, fees and charges and are not willing to continue to be beaten down by the difficulties in managing and maintaining credit card accounts.

While these are understandable reasons to get out of credit cards, they are somewhat short sighted. Credit cards still have advantages and are a good way to do business with retailers. Here are six good reasons to keep your credit cards and work through any issues you are having.

1. Safer than cash, debit cards and checks

Because you are not held liable when your credit cards are used fraudulently, they represent one of the safest methods of paying for things on a daily basis. Unlike cash, debit cards and checks where once the money has been taken, you are out the money and chances are almost nil in getting it back.

2. Accepted almost universally

Not only do credit cards trump other forms of payment in the U.S., but when travelling abroad, you will find that they make financial transactions almost seamless between currencies. The credit card companies handle the transaction on the back-end and you never have to be concerned about it.

3. Gives you options

How many times, when away on vacation, have you had to pay for an unexpected car repair or some other semi-emergency? If you are from an out-of-town location, paying for these kinds of things is much easier with a credit card. Most merchants will be hesitant to accept a personal check and chances are high that you do not have the cash to pay for the item in question. Plus, would you really want to use all of your cash for that purpose?

4. Earns rewards

If you have a rewards or cash-back card, you can earn some significant rewards for using your card for everyday purchases. While some of the restrictions have gotten tighter, they still represent the best reasons to own a credit card.

5. Transfer balances

The 0% interest balance transfer cards allow you to move your balances between cards and avoid interest while you crank on getting the balance paid down. Also, with the included checks, you can transfer the balances of almost any kind of debt that you have onto one of these cards.

6. Manage expenses

This is especially helpful for those who are in business for themselves or who travel a lot. Being able to manage your business expenses with a credit card is easier because you have one account into which to combine your transactions. It is also helpful from a tax standpoint, because your business expenses would be enumerated in one account which would be easily accessed at tax time. Just get out your statements and use to validate tax deductible items.

Yes, it is more difficult to work with credit cards right now, but that does not mean that their advantages have been completely wiped out. You can still benefit from them with the proper practices and methods in place that will keep you in good standing with the card issuers as well.