7 Advantages Of Using Credit Cards and Loans

Credit is really a good thing in our lives. It allows us to make expenses for many needs which we otherwise would not have been able to afford. It also affords us a certain degree of freedom by providing us with ready finances in needy situations.

· Use of credit builds up a good credit history — you can build up a good credit history by using a credit card or taking alone that you make statements on regularly. A good credit history today comes in use for so many different things. Potential landlords and employers want to check the credit history of an individual before hiring them. Getting major loans such as a mortgage loan or for your first automobile requires you to have a good credit history as well. You can build up a good credit history by simply using a credit card moderately every month.

· Credit card makes things convenient — a credit card provides ready finances in almost every situation. Having a credit card eliminates the need to carry around all the time. Carrying a credit card is many times safer than actually carrying cash as only you can use it. If it gets stolen you can have it reported and immediately blocked from an authorized abuse.

· Credit card makes things possible — online shopping, travel reservations etc. are all made possible by the use of a credit card. It makes financial transactions are simple and secure.

· Credit is transparent — using a credit card provides for clarity as you get a monthly bill which lists every transaction that you made. Whatever credit charges you will be present on the bill.

· Credit provides resources — whenever we need a large amount of money for important purchases such as an automobile or a home, it is credit that comes to our rescue. Without the presence of facilities like car loan and a mortgage loan, making the purchase for these commodities would have been impossible for most of us. Even a credit card allows you to revolve your balance from one month one other. Some credit cards also allow you to break a single large transaction into monthly installments at a very low rate of interest.

· Bad credit can be fixed — even if you have run into debt and have had bad credit transactions are bad credit report can be fixed. Negative information does not remain on your credit report forever. As long as you work towards having new positivity can be reported to your credit report you can soon have a positive and a good credit score once again. There is professional help also available to help you get out of debt and restore your credit rating.

· You are protected by the law — there are various federal laws such as the Fair Credit Reporting Act, Fair Debt Collection Practices Act etc. that protect the consumer from the creditors from abusing a situation. The consumer is armed with some very powerful rights to balance out the relationship between debtor and the creditor.

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