Credit cards can be helpful tools. Designed to cover essential costs, they often enable people to stay financially afloat.
Without them, many would struggle to make ends meet. So long as the money borrowed is paid back on time, they benefit everyone involved.
In fact, analysts from Statista predict that by 2026, 60 million of us will be paying with cards on a daily basis. A lot of these transactions will likely be made with credit cards.
Clearly, this payment method is becoming increasingly popular. But what are the primary uses for it? We explore how credit cards are typically used.
Bill payments
Very often, people use credit cards to pay bills. Most choose to do this because of their income payment schedule. For example, if unexpected costs have caused funds to run low before the next bill due date.
The rise of online banking means that several are now able to do this from home. Statista has revealed that 69% of Brits bank online. So, it would not be surprising if most people paid their bills in this way — with or without credit cards.
Food
We call this an essential item for a reason. Everybody needs food. More often than not, it is the most vital of purchases.
Like bills, credit cards owners can buy consumables when there are no other funds available. If someone doesn’t have enough cash for the next supermarket shop, a credit card can prove immensely worthwhile.
Once money has entered their standard account, they are then able to clear the debt. And so, a credit card could help owners to manage their cash flow better and keep them financially comfortable until their next pay or income cheque arrives.
Fuel and transport
A card owner is unlikely to have factored unexpected travel into their spending plan. Unable to pay for public transport or extra fuel, they could become stranded.
For most people, this is an undesirable outcome. But credit card owners have the ability to pay for the charges incurred by impromptu trips and journeys.
Even better, sensible spenders can use unplanned events to boost their credit record. In doing so, they may be offered even better deals in the future.
A credit card can provide financial protection in tricky circumstances. And if the money borrowed is returned promptly, the advantages increase. With careful budgeting and clever planning, you could maximise your saving potential — and help you to prepare for rainy days.
