If you shop online, which most of us do, credit cards come in handy as they are the preferred method of payment for almost all online retailers. Some do provide Paypal and and other services, but not every merchant accepts payments via Paypal, and you also can’t earn rewards for purchases made using their service.

If you pay your bills on time you demonstrate that you are a financially responsible person. Responsible credit card use is one of the best ways to build your credit history and scores which can open up doors for you when you apply for bigger loans, like a car or mortgage. In addition, the stronger your history, the better the pricing you may receive not only for other loans but for future credit cards as well.

If these is a problem between you and a merchant who you’ve purchased good from and you can’t settle the disagreement you may contact your credit card company if the transaction hasn’t been processed to hold the payment. If you had made the payment for the goods or services using cash you wouldn’t have this option.

You can travel with your credit card and use it instead of traveler’s checks (which are a huge pain) or cash. Credit cards are accepted just about everywhere and from a convenience standpoint there is no better way to pay for things when traveling.

Sometimes you need to buy something immediately but you don’t have the funds available to do so. With a 0% credit card offer you can buy that necessary item and pay for it in, for lack of a better word, installments, during that introductory period without accruing interest. These types of credit cards can act as interest free loans and are extremely useful during the holidays.

When renting a car you almost always have to put down a credit card before you leave the lot. Some rental car agencies don’t even allow you to use debit cards for this anymore. With hotels, securing your room in advance or for additional purchases once you check in is easiest to do with a credit card.

Carrying a credit card is a much safer than carrying large quantities of cash. Additionally, in the unfortunate circumstance of a robbery, once your cash is gone, it’s gone. With a credit card you can simply call your company and the most you will be liable for is capped at $50.

You never know what can happen. If you lose your luggage when traveling or any other emergency arises you can use your credit card if you don’t have access to a bank or if all of the banks are closed. Many people have one particular card designated strictly for emergencies.

Most utility, auto insurers, and other companies that you do business with have sophisticated recurrent payment programs where you may automatically have your card billed for their services.

Business owners can track employee spending and separate their corporate from their personal spending by obtaining a business credit card. These are particularly useful as they prevent the expensive and often tedious accounting nightmares created by using personal accounts for business purposes.

Many credit card contracts come with additional benefits that protect you for purchases made with the card ranging from travel insurance, damage protection, and even theft.

If you strictly make the minimum monthly payment on a credit card balance that is not under a 0% percent introductory rate, you will get charged interest on your balance. This can result in paying way more for the things that you have initially purchased with your card in the first place -- probably more than you would have wanted to pay for them. If you find yourself in this situation where you cannot pay more than your monthly payment and interest is being charged to your account, applying for a 0% balance transfer offer will help you to catch-up.

If you do not pay your bills on time you may get bumped to a higher interest rate. Additionally, if you are taking advantage of a 0% rate you may lose that perk as well as forfeit any rewards that have been accrued if you have a rewards credit card.

Some people tend to overspend with their credit cards. Many people do not use credit cards as they would cash and also don’t abide by the principles of delayed gratification.

For those who drive up too much debt, debt they cannot pay-off, the impact may be on their emotional and physical health. Being swamped by creditors with no end in sight is not a good thing.

Failure to make payments at all on a credit card account can ding your credit score. This negative impact will make it more difficult to get approved for favorable rates on other loans in the future.

There is a major difference between wants vs. needs. The mistake that some people make is that they confuse the two. If you want something and you can afford it, even if it means paying for it over time with a credit card, that isn’t a bad thing especially since credit cards allow you to buy things at no interest with 0% rates. The problem can arise for some where they think they can afford something but really can’t. Misusing a credit card for purchases that cannot be repaid is not a smart way to utilize them.

Taking out a cash advance using a credit card will usually result in a higher interest rate being charged to the transaction. Cash advance rates are typically much higher than balance transfer or purchase go-to rates so it’s important to have a quick payment plan as the interest will accrue at a much higher clip.

Individuals who are habitually late paying their bills may have problems with credit cards from a financial standpoint. Because fees are assessed and penalty rates may kick in (which are much higher than normal rates) when late payments are made, a purchase that they could originally afford based on the pricing of their contract may become less affordable when fees and/or penalty rates are applied to their accounts.