To buy things
Yes, stating the obvious perhaps. However, did you know that by making purchases on a credit card and using this as your day to day payment method you could gain more protection as a consumer than other alternative payment methods?
So let’s get a bit more technical now. Purchases of between £100 and £30,000 are protected under Section 75 of the Consumer Credit Act. This protection was further increased to £60,260 under the more recent Consumer Credit Directive. This means that if you purchase an item on your credit card which turns out to be faulty, or the company goes bust before you receive your goods, you should be able to claim a refund from your credit card provider.
Spreading the cost
A big advantage of purchasing via a credit card is that you don’t have to pay for the items in one go. You’re able to spread those repayments over a period of time. Be careful though, you will be charged interest on the outstanding amount and this can become expensive if you are not careful.
There are credit cards available that offer 0% on purchases and/or 0% on any outstanding debts transferred from other credit cards. Before you get too excited however, these are usually reserved for customers with good credit histories.
Build credit history
As strange as it may sound, having a credit card can, over time help improve your credit score. Whether that is the case, depends on how you use your card. If you build slowly, meet all repayments and repay outstanding debts on time, your score is likely to improve.
Obviously the opposite is true if you start missing payments, so make sure you always pay off at the very least the minimum payment each month.