2 min read

Why pay with your credit card?

Ola Rydzewska
2 February 2017

We look at the top reasons why you might benefit from paying with a credit card.

Credit cards are regarded by many with a degree of suspicion as an easy way to get into debt. Although we tend use credit cards for bigger purchases, using a credit card does not always mean that you are spending money you don’t have. Used responsibly, it can simply be seen as an alternative method of payment with its own benefits and drawbacks.

So why choose to pay with your credit card?

  • Your credit report – using your card responsibly and paying the balance in full each month will help you build your credit score. The older the credit card, the more reliable you will appear, and the age of the account also factors positively into your credit score.
  • Rewards and cashback – different cards offer different kinds of perks. These include Avios points that can be exchanged for plane tickets, points that can be exchanged for goods or services, and even tax-free cashback, which means you get a small percentage of your spending back.
  • Purchase protection – Some credit cards offer purchase protection against theft or loss on items you buy with the card.
  • Fraudulent use protection – credit cards also give you protection against anyone else using your card without permission. The bank should refund any fraudulent payments.

Find credit cards you're eligible for with ClearScore

Whilst these perks are a great way to get a bit extra from your everyday spending, they can be easily outweighed by bad habits such as missing payments or withdrawing cash. These not only incur fines, but can also damage your credit score.

If you decide to apply for a new credit card, make sure that your credit score is ready by checking your report regularly (Try out our 5 minute monthly checklist).

by Ola Rydzewska

Ola studied English Literature and Language at UCL before completing a Master's degree at LSE. As one of our first employees, she really knows her stuff when it comes to personal finance. 

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We offer a free service where you can handle everything to do with credit in one place. In your ClearScore account, you can see your credit score and the full details of your credit report. Your credit cards, mortgages, mobile phone contracts, loans, overdrafts and utilities all on the record. Our goal is to make ClearScore as simple, calm and straightforward as possible. Money is stressful enough.