Giving credit where credit’s due

In the last 20 years, cash became less important as credit cards began their enormous rise in popularity. Today there can be few people who don’t have at least one piece of plastic in their wallet. But how many of us think about what it means when we apply for a credit card?

The reality is that it would be very difficult these days to get through life without having at least one credit card in your pocket. Imagine something as simple as going out for dinner and having to think ahead and have plenty of cash available to pay the bill.

Try travelling away from home, owning a car, buying presents on-line and going on holiday without a piece of plastic with a magnetic strip on it in your pocket. Difficult, to say the least.

Wherever you are, at home or abroad, it's reassuring to have a credit card in your pocket

The reality is that credit cards are a form of insurance policy. Find yourself away from home and without enough money to pay a bill. Your credit card will always be there to provide you with financial back up. None of us are immune from the sudden emergency, the unexpected situation, the need for help.

Of course, different credit cards are available with different deals and the best thing to do is to shop around to find one that fits you and your family. As in all things, arm yourself with research and information and you won’t go far wrong.

The research should include finding out how to use your card on-line. There are hundreds of thousands of sites that will be thrilled to take your money via that tantalising 16-digit number on your card, the expiry date and those three little numbers on the back. But, if you go shopping on-line, make sure the site is secure, don’t ever provide anyone with your pin number and if you lose your card, report it immediately.

How much protection do you have if, in the process of buying a gift for your granny via the Internet, you suddenly find figures on your credit card statement that bear no resemblance to your purchase? Before you sign the credit agreement, ask questions. Will your credit card issuer help you to sort out any problems? Quite simply, if you have any doubts, don’t use your card.

Learn what your credit card can do for you, find out what insurance and cover it provides and then go ahead and use your plastic. Fantastic!