When credit cards first came on the scene, people worried they were simply a way of accruing debt and ignoring what you owe. However, times have changed and it is becoming more beneficial to have a credit card than to not. Whether it’s for the latest album on your wishlist or the next big gig, shopping online is one realm in particular where credit cards not only come in handy but can actually bring you added benefits as well. Here are some credit card tips and benefits to keep in mind when using a credit card online:
If you use a credit rather than a debit card to make an online purchase, be it a grocery order, clothing item or tickets to a gig, you will automatically be protected under Section 75 of the Consumer Credit Act, so long as the purchase is more than £100. So if the company selling you the tickets goes bust, you are within your legal rights to get your money back from the credit card company.
Build your credit history
Ordering anything online with a credit card and then paying the card off in full every month will help you build a good credit history. A good credit score will make it easier to buy a home, get affordable insurance and qualify for certain loans. Your credit score will improve over time so continue to use your card for everyday purchases both in person and online.
Spread the cost
Although it’s always best to pay your credit card in full every month, if you really want to get your hands on those Glastonbury passes and you haven’t got enough cash to pay off your card immediately, you can spread the cost over two or three months. If this is the only purchase you have on the card, the amount of interest you’ll have to pay will be small and sometimes it’s more important to have payment flexibility. A credit card gives you just that.
Earn airline miles
Finding a credit card that is the right fit for you is important. Many people living in today’s “global age,” will admit they don’t think twice before booking a weekend abroad or hopping on a plane to see a show or attend a sporting event in a different country. The inter-connectedness of the world today means we’re travelling more and, with the right credit card, you can help bring the cost of these travels down.
Credit cards linked with an airline will earn you valuable miles every time you make a purchase, including online, and, once you accrue enough miles, you’ll be eligible for a free flight. As long as you pay the card off each month you won’t be charged interest so from a consumer’s point of view, this is a card worth considering. Just think – you could get your flight ticket to Croatia for this year’s Hideout Festival for nothing!
Image by StormKatt, used under Creative Commons license.