Don't have a credit card? If you're one of the small percentage of UK consumers that doesn't have a credit card, then you might not be doing yourself any financial favours. Though having a card does come with its own risks, the benefits of having one far outweigh those risks. Obviously, you'll need to keep on top of your bills and make sure that payments are made on time, but having a credit card could be deemed a necessity by many. Don't believe us? Then here are the reasons why you should apply for that card today!

A Credit Card Helps Your Credit Rating

Only people with good credit ratings can do things like apply for mortgages, pay for cars in installments, and even get a mobile phone contract. One of the best ways to build your credit rating, or to improve a bad credit rating, is to have a credit card. By applying for a card, getting approved, and then using that card sensibly (and paying your bills on time), you'll find that your credit score improves. This increases the likelihood of you being approved for further credit later.

A Credit Card Lends You Money for Free

If you're looking to get a loan, maybe a little extra cash to pay for car maintenance or home repair, or even to take a holiday, then with the right credit card you can borrow for free. Look for cards that offer 0% interest on purchases and you could borrow money for no interest for a year or more. Borrowing money on your credit card is easier than using other methods, and low to no interest means you won't be spending more than you have to.

A Credit Card Gives You Free Stuff

Most credit cards these days come with incentives for making purchases using the card rather than cash. These can be anything from frequent flier miles to supermarket points. Simply by spending on your card you'll get free stuff, no added hassle. And who doesn't want something for nothing?

A Credit Card Gives You Purchasing Protection

Thanks to a piece of legislation known as Section 75, a credit card will give you extra protection for your purchases. If your stuff is broken, gets lost in the post, or just isn't as described in the ad, then Section 75 allows you to claim financial compensation from your credit card company (as long as you bought the item on your card) as well as from the seller. This applies to any purchase you make that amounts to £100 up to £30,000.

A Credit Card Offers Security

Still walking around with a pocket full of cash? If you lose that money, then it's almost certainly gone for good. Lose your credit card, however, and as long as you report the loss or theft fast you won't lose a penny. Even if a thief does manage to use your card, you won't be responsible for the charges as long as you can prove they weren't made by you and that you reported the card as lost or stolen.

A Credit Card Gives You Insurance

Many cards will also give you free insurance for stuff that you buy on the card. So if you buy, say, a new phone and it gets lost or stolen then you might find that your credit card company will give you your money back. This is generally only for a short period of time (around 90 days after purchase), but it's still free insurance!

A Credit Card Makes Travel Easy

If you travel abroad frequently then using a credit card is certainly the way to go. Not only do you not need to worry about the hassle of currency exchange, but spend your money using your card and you won't be paying any commission on foreign currency either. Plus, you'll always get the best exchange rate. Oh, and that Section 75 purchasing protection? That applies to purchases made abroad too!

A Credit Card Gives You More Options

More and more companies, particularly online services, are credit card payment only. Plus, plenty of hotels, rental car companies, and all kinds of other services require a credit card to even make a reservation (no matter whether you're planning on paying cash or not). Having a card just means that you'll have more options in life!

There are plenty of reasons that applying for a credit card make sense. So what are you waiting for? Start getting free stuff, protection, insurance, better exchange rates, and peace of mind now!

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