10 Ways Credit Cards are Good

Should you get a credit card? Are people always telling you to avoid debt? Are Credit Cards always that bad? In this video we're going to completely bust this myth with ten ways credit cards are good Let's check it out

Welcome to Money Unshackled, the investment channel that sets you and your finances free This is Andy, I'm Ben and today we're talking about ten ways in which credit cards are good If you like what we say be sure to click like and click Subscribe and if you click the bell you will receive a notification every time we release a video so you don't miss out Let's check it out Number one – Cashback and rewards

Some credit cards will give you back a percentage of your spend, others will give you rewards and some will give you discounts on the purchase Basically they will give you money for stuff you are buying anyway Pretty cool! Number two – Section 75 protection This is a tediously dull piece of legislation but it may save your bacon If you spend between 100 pounds and 30,000 pounds on a credit card you are protected by section 75 of the Consumer Credit Act

should the goods or services prove unsatisfactory or never arrive

You've probably heard of stories of when airlines have gone bust leaving people devastated that they paid for a holiday in cash and they've lost the lot If they paid for it with a credit card they can claim back full compensation How amazing is that? Number three – Travel credit cards In my opinion this is the best feature of some specialist credit cards Some specialist credit cards will give you cheaper overseas spending than any other payment method

You can get perfect exchange rates, avoiding the rip-off FX rates at a exchange bureau Also most debit cards will charge you a fee to make a purchase or to withdraw cash abroad whereas a specialist travel credit card such as the Halifax Clarity credit card will not Number 4 – Boost your credit score Having a decent credit score is so important these days A good score means access to cheaper debt such as a cheaper mortgage on your home This could save you thousands

An excellent way to boost your credit score is to spend on a credit card and to pay off the balance each month It couldn't be simpler! Number five – Theft protection If you lose your wallet or purse, or worse get robbed you will likely lose all your money and you are very unlikely to see this ever again Lose your credit card and it's no problem One quick call to your bank and you can have that card cancelled and a new one sent out immediately I've heard so many stories on my travels where people have been robbed and have lost everything

It's ridiculous, just use a credit card Number six – Better budgeting It's easier to budget using a credit card Many of your expenses will be annual and so by using a credit card you can spread these out over a period of time, often interest-free Also many personal finance websites will allow you to import your online credit card statements, which allows you to analyze your spending patterns

Number seven – Credit card only transactions Some transactions can only be made using a credit card For example, renting a car or a hotel reservation They want to check that you have the funds available before they give you the service In the case of a car rental it gives the rental company assurance that should you damage the car, that you have the funds to pay for it Number eight – money transfer and interest-free purchases Some credit cards allow you to transfer money straight from a credit card into your bank account, while others allow you to make purchases over a lengthy period of time, currently up to two to two and a half years interest-free

We never encourage anybody to take out one of these cars to buy frivolous things but it's a great way to access cheap money to use to invest Number nine – Emergency source of money We encourage you to save an emergency fund but if this is beyond your reach then a credit card is a great way to cover an emergency For example, if your boiler was to break in the middle of a winter you'll be glad that you had that credit card at hand Number 10 – Convenience You simply cannot beat the convenience of using a credit card You can use them almost everywhere and better yet you never have to worry about not having enough money on you

You also don't need to worry about having the right change and even better you don't have to carry around any of those annoying coins, and since the advent of contactless payment, paying using a credit card couldn't be simpler One final thing, not all credit cards are created equal For example, if you want cheap overseas spending then you will need a specialist overseas credit card If you choose the wrong card then it is likely to be a very expensive Question of the day – what other cool features do credit cards offer? Tell us about them in the comments section

Thanks for watching On this channel we talk about personal finance, investing and all things money so be sure to hit the subscribe button below for more great content This is Money Unshackled See you next time