Sometimes credit cards are perceived to be all BAD news with NO benefits which isn't exactly true. There are many benefits to using a credit card if used wisely. The keyword here is WISELY everyone. Only you know how well you can trust yourself with one, so if you don't feel comfortable applying for one, then don't.

However, If you are intrigued by Credit Cards, do take a seat. As we've done the hard work for you and have written up some pros and cons of having one in your life.

THE DO'S

Credit Score

Credit Cards can help build your credit score. How? might you ask - well using your credit card throughout the month to make purchases and paying the FULL balance once your statement has come through. By doing this the balance is recorded and shows lenders that you can manage your repayments well.

Security

For big-ticket expenses such as holidays, it is recommended to always use a credit card. This is because credit cards offer buyers protection. This means your money is more protected in the event of the airline going bust. In Section 75 of the Consumer Credit Act, you are allowed to challenge (via your bank) any merchant for purchases above £100 in value if an issue arises.

Reward Programs

Who doesn't love a freebie?! Reward programs are one of the best advantages you get from using credit cards. Cashback, free petrol, airline miles, and point reward programs are just some of the perks you can earn. And once you get used to using credit, strategically using rewards can help you save money in the long run.

THE DONT'S

High-Interest Debt

If you don't use your credit card wisely and fail to repay the minimum requirements at the end of the month - you could spiral into high-interest debt. This could damage your credit score as there will be penalties for missed payments. A lot of self-control and discipline is needed to make sure those monthly payments are made on time.

Overspending

Credit Cards extends our purchasing power. We are more likely to purchase things we can't afford because of our credit cards. People see it as "free money" forgetting you have to pay that "free money" back. This is why so many of the population are in debt over their heads. Use your credit card for things you would have bought anyway, not for things you can't afford.

Hidden Fees

Some credit card accounts have annual fees alongside fees for taking out cash or for using your credit card abroad. Make sure you do your homework on what card is best suited for your needs. Also, you might spend more on fees and interest rates than you earn on discounts and cash back so do check that the benefits of having a credit card outweighs the cost.

Credit cards are not everyone's cup of tea but they will be for others. This post is merely about highlighting the advantages and disadvantages of credit card usage.

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