what are benefits of using credit cards unit 8 lab questions course hero

Why trust us?

Our editorial team and expert review board work together to provide informed, relevant content and an unbiased analysis of the products we feature. The editorial content on our site is independent of affiliate partnerships and represents our unique and impartial opinion. Learn more about our partners and how we make money .

Summary

You probably know it’s quick and easy to use your credit card. But you might not know the other benefits you’re getting, including rewards, perks, fraud protection, credit building and more. Read on to learn more about the key advantages of using credit cards.

1. You may get rewards and perks when you use your cards

For Ted Rossman, industry analyst at CreditCards.com, the first thing that comes to mind about credit card benefits is the rewards.

3. You can use credit cards to start a business

According to Brock Blake, founder and CEO of Lendio, one of the biggest misconceptions about credit cards is that they’re not a good way to fund a startup.

4. Credit cards can help you stay organized

Kinane pointed out that using credit cards allows you to track your overall spending through your credit card bill or your online account, which can help you establish a budget and recognize where you should cut back to save money throughout the year.

5. You can get a card that matches your needs

Another big benefit of credit cards is that you can choose the card that works best for you, Kinane said.

6. Credit cards provide purchase and price protection

While policies may differ, most card issuers offer purchase protection, which allows cardholders to file a claim on eligible damaged or stolen items for a limited time after the date of purchase, Kinane pointed out.