Purchase Power and Ease of Purchase – Cards are accepted in millions of outlets in countries around the world, making them a truly global method of payment. Credit cards can make it easier to buy things. If you don't like to carry large amounts of cash with you or if a company doesn't accept cash purchases (for example most airlines, hotels, and car rental agencies), putting purchases on a credit card can make buying things easier.
Instant cash- Cash advances are quick and convenient, putting cash in your hand when you need it.
Purchase Protection - Using a credit card can help you track your expenses and avoid fraud. Keep your receipts, check them against your monthly statement, and notify your card company right away if you spot any errors. Report suspicious charges or a missing card by calling the emergency number on the back of your statement. In most cases, you won’t be held responsible for any charges if your card has been stolen.
Check with your card issuer about damage protection. Some cards provide protection if you buy merchandise that turns out to be defective. If you are unable to resolve the problem with the merchant, you may not be charged for the item.
Building a Credit Line - Having a good credit history is often important, not only when applying for credit cards, but also when applying for things such as Home loans, Car Loans and any other consumer loans etc., now a days even for some jobs. Having a credit card and using it wisely (making payments on time and in full each month) will help you build a good credit history.
Emergencies - Credit cards can also be useful in times of emergency. While you should avoid spending outside your budget, sometimes emergencies (such as your car breaking down or flood or fire or any sudden health issues) may require urgent money, which can be made available with the credit card.
Reap the rewards - Credit cards offer you all kinds of extras that cash doesn’t. Depending on your card, you may earn one or more of the following rewards:
a. Air miles
b. Cash back on everyday purchases, including gas and groceries
c. Discounts on purchases with retail partners
Balance Transfer - Many credit card companies offer low introductory interest rates. These offers allow you to move balances to lower-rate cards. Teaser rates--Low introductory rates may be an attractive option, but they last only for a limited time.
Flexible credit - Most options offer an interest-free period of up to 59 days from the date of the transaction (except for cash advances). If you repay your balance in full each month then you can use the interest-free period to your advantage, thus avoiding interest charges.
Credit Card Benefits - In addition to the benefits listed above, some credit cards offer additional benefits, such as discounts from particular stores or companies. Some cards even offer incentives to spend, such as cash back, loyalty points, which means you could actually make money from your credit card. These are only worthwhile if you pay your bill in full – otherwise the interest you’ll be charged will be more than the value of the rewards.
But it’s important to remember that a credit card is a type of loan. When you spend on a credit card you are essentially borrowing money – and if your debts get out of hand you could end up in big trouble.