7 Reasons to Pay with a Credit Card

Most people understand that splurging on credit cards is a bad thing, but there are a lot of pluses to owning a credit card and using it responsibly. In fact, if you can control your spending, it is wise to have at least one credit card in your purse – and here’s why.

Buy Now, Pay Later

There is a lot to be said for only buying what you need and not sticking purchases on credit. But, for big-ticket purchases, you may not have the money available at the time you need it. Say, for example, your cars exhaust falls off but pay day is a week away.

Fear not! Your trusty credit card can pay for the fix and if you pay the balance before the statement date, you could enjoy up to 56 days interest-free credit.

Spread the Cost

Need a new washing machine but your savings account is at rock bottom? Credit cards are a useful way of spreading the cost of a large purchase. Apply for a credit card with an introductory interest-free period, you can spread the cost of the washing machine over several months and it won’t cost you extra.

Purchase Insurance

Section 75 of the Consumer Credit Act gives you extra protection if you pay using a credit card. If the goods or services cost more than £100, you’re covered. You don’t need to pay the full amount on your credit card – use your card to pay a deposit and settle the balance with cash if you prefer. It’s like a free insurance policy, so if things go wrong, you can claim a full refund direct from the credit card company.

Rewards

Earn points, air miles, and other rewards for spending money. Different schemes offer different rewards, however, so check out the latest credit card offers before you apply for a new card.

Fraud Protection

Debit cards offer little fraud protection. If a fraudster uses your debit card details to go on an online spending spree, the money will leave your account instantly and you could end up in serious difficulties until the matter is resolved. Fraudulent transactions made via a credit card are easier to handle, as the money doesn’t leave a big hole in your bank account. So long as you notify the credit card company immediately, all transactions will be cancelled and you won’t be out of pocket while the company investigates the fraud.

Boost Your Credit

Got bad credit? Use a credit card responsibly and rebuild your damaged credit rating. Credit cards are also useful if you don’t have a credit rating, either because you have lived abroad or you are young.

Cheaper Spending

For obvious reasons, if you spend, spend, spend, but only ever make the minimum repayments each month, a credit card is expensive. But, if you travel abroad, using a credit card as opposed to a debit card, could save you money, as exchange rates are better.

If you can pay off the balance each month, using a credit card to make purchases is always a smart choice.

AI Takes Lawyers Into the Future

For a long time, legal work has been arcane and expensive. It’s the preserve of highly trained professionals who have studied for years, and those with the finance to employ them.

Now, lawyers and computer experts are beginning to train AI networks to take some of the strain out of the rote work for lawyers. This year has seen a breakthrough in Legal AIs offering contract review services.

This means that a service that previously could have left companies waiting for weeks for an answer, and left a beleaguered business lawyer sifting through a standard contract for tiny loopholes and deviations over the course of hours. Using a technology called ‘natural language programming’ a properly trained AI can sift a contract within 60 minutes, according to criteria set by the client, under advice from their lawyer. The AI will flag any sections of the contract that deviate from the norms established by the client, so they can be examined more closely.

This makes the service not only quicker, but more financially accessible. If you’re just using a lawyer on an ad hoc basis, this will cut your bills every time you have a contract to review. If you keep a law firm on retainer or have your own in-house lawyer or legal time, this will free up valuable time for them to provide more advanced services for you. While the AI is doing basic work reviewing contracts, your lawyers can be researching and preparing to write legal briefs and mediate disputes to protect your interests.

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