Benefits of owning a credit card

Used responsibility, credit cards can be extremely useful, from being a way to improve your credit rating to having purchase protection. Credit cards vary from lender to lender, but effectively act as a type of loan, often with additional benefits such as introductory cashback offers or interest free periods. Incentives can also include insurance, rewards and loyalty schemes. Here, we take a look at some of the advantages of getting a credit card.

Complete protection

With credit cards, you’re covered when you purchase goods or services between £100 and £30,000 if something goes wrong. Credit card users are protected by certain laws that aren’t offered to debit card or cash users, such as security from fraudulent transactions - a safety net if the company you’re buying from goes bust, or a refund if your purchase is lost in the post.

Boosting your credit score

If you keep up with payments to avoid unnecessary interest or charges, and you don’t exceed your credit limit, you could improve your credit rating and be accepted for credit in the future. So use your credit card responsibly and be sensible when spending and you should reap the rewards. To ensure you always make your payments on time, it’s a good idea to set up a direct debit to pay off the full amount, or as much as you can afford of your balance each month.

Making one-off purchases

A credit card could be a good option for making an important purchase you can’t pay off all at once. For instance, if you need a new washing machine you can make the purchase and spread the cost over a number of months. It’s always worth budgeting a little bit extra a month though for emergency spends like this so you don’t always have to rely on credit. The extra protection a credit card offers should also always be considered when making an expensive purchase.

Earning rewards

Most credit cards come with rewards, such as cashback offers or loyalty points which can be redeemed as you spend. If you can afford it, using your credit card can offer some great benefits.

With the aqua reward card, you can earn 0.5% cashback on everything you buy, up to a total of £100 per year.

Travelling abroad

Credit cards can also be reliable for accessing travel funds, as they provide extra protection when you’re abroad. As well as this, sometimes you won’t pay any extra fees for using certain credit cards in a different country - worth checking with your credit card provider. The aqua Mastercard credit cards are accepted at over 35.9 million places worldwide.

 

Using a credit card responsibly

Credit cards have some great benefits but only when used responsibly. It’s important to manage your payments so that you pay off the full amount or as much as you can afford each month (providing that more than the minimum payment amount) and stay within your credit limit. Being late with your payments or exceeding your credit limit may result in a fee but also could harm your credit rating meaning you could struggle to attain future credit.

 

aqua credit card benefits

aqua credit cards come with a range of flexible payment date options, a friendly UK-based customer helpline, no annual fee, the security of chip and PIN technology whenever you use your card and the opportunity to add an additional cardholder.

Identify the card that suits you best and check the terms and conditions to ensure it offers the most suitable features. Read the small print to make sure you’re aware of the card terms and don’t miss out on special deals. Credit card benefits can be countless – when used responsibly, a credit card could give complete financial confidence just knowing that you have access to credit in times of need.

 

Representative 34.9% APR variable on the aqua reward card.