Secrets to Improve Your Credit Score: Do I Really Need Credit Cards?

Friday, July 16, 2010

Do I Really Need Credit Cards?

Most peoples first reaction to a financial hardship is to cut up and cancel their credit cards, having the ultimate goal of paying cash for everything. Although this extreme way of thinking and doing may work for some, for most of us this just won't cut it.

A lot of people wonders, "I have a VISA debit card, why do I need a credit card too?" Actually, credit and debit cards are two totally different payment options. There are many benefits a credit card offers that a debit card does not. Some of these are:

Bank cards report to your credit report and if handled properly increase your credit scores.
Convenience. It is virtually impossible to rent a car, book a hotel room, or purchase airline tickets without one.
Liability. Credit cards offer consumers protection under the Fair Credit Reporting Act (FCRA) for purchases over $50.00 Most debit cards, either pre-paid or tied to a checking account, and business credit cards do not.
Fraud Protection. Purchasing scams, especially on the internet, are ram-pet. Using a credit card for telephone and online purchases reduces risk to your cash flow.
Purchase Protection. Some credit cards offer card holders Purchase Protection. This added benefit guarantees the items you purchase from theft, accidental breakage, etc...Be sure to ask your card issuer about this valuable option.

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FTC Required Disclosure

The Federal Trade Commission requires that I disclose any relationship I may have between a product manufacturer or service provider when I write about a product or service.

My intention for this blog is to provide consumers with the knowledge to improve their current personal credit situation. It is the readers responsibility to do additional research and to make responsible decisions based on their own personal financial situations.

My promise to my readers is as follows:

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