This is only a question you can answer – credit cards can give you the flexibility to make payments on demand – whether its an unexpected bill or some other expense. However, it’s worth bearing in mind that you will need to meet a minimum monthly payment to help keep your credit under control. The more you can afford to repay the better.

A credit card is essentially designed for short-term borrowing – like a payday loan, for example. The only real difference is the interest rate tends to be lower and you get a card to make payments whilst on the move or online.

If you’re looking for a larger amount over a longer period then you may be better off looking at a personal unsecured loan or secured loan.

Credit cards are more suitable for travel, booking hotels, paying bills or helping to meet monthly expenses when things are a bit tight. The last thing you want to do is blow all your credit on something major. Besides – not only will this mean that you have no spare credit but it could also mean you are unable to repay the balance and descend into credit card debt far quicker.

What About My Credit Score?

That’s a good question when you think about it. If you have a poor credit score you could help repair this with a credit card… there are credit card companies and banks who will give you one on the condition that you agree to make the mandatory monthly repayments.

However, if you are still in significant debt then the worst thing you could do is take out a credit card as you could descend further into debt the more you spend. In the end it is up to you… if you think you could manage a credit card then go-ahead – there are major benefits to having one.

Other than the ability to borrow small amounts on a credit card what are the other benefits to having one?

When you think about it a credit card is so much more than simply a means to borrow money to help pay for goods, services and bills. Some companies actually allow you to build up your airmiles and some will give you airmiles up-front.

Other credit cards come with different benefits – such as lower interest rates or a far larger starting balance. There are even some credit cards that will give you cashback when you shop at certain places or spend over a certain amount… you simply need to take a look around and find the best deal out there.

If a credit card doesn’t sound like your cup of tea check out this article on alternatives to credit cards.