Record Keeping

• Credit card statements provide you with an extra record of transactions you made using your cards. Some credit card companies also provide you with statements that track your spending patterns by category, providing you with additional information about your purchasing habits. If you are not the type of person who saves cash register receipts and tracks your own spending, these features can help you to organize and understand your finances.
  
  

Cash Flow

• When you are short of funds, using a credit card can help you to get through difficult periods. Credit card spending should not be a habitual financial strategy; if you consistently need to use your credit card in order to make ends meet, then you are living beyond your means. Nonetheless, if you tend to earn more during certain times of year. or if you own a business where you sometimes need to purchase inventory to generate sales, a credit card can help with your cash flow.
  
  

Building a Credit History

• Using a credit card can help you to build a credit history and establish an advantageous credit score. If you consistently use your credit card and pay off your balance regularly, your credit score will be higher than if you never use a credit card, because you will have demonstrated your ability to borrow money and pay it back. A high credit score will affect the interest rates you pay on everything from future credit cards to a home mortgage.
  
  

Emergencies

• Paying by credit card can be advantageous during emergency situations. If you injure yourself and are unable to work, you still need to cover basic expenses such as groceries. As with using a credit card when you need to improve your cash flow, emergency use of credit cards should always be a short-term strategy that you should abandon as soon as possible.
  
  

Rewards

• Some credit cards offer rewards programs based on the amount that you charge. Credit card rewards range from airplane tickets to household appliances. Never use your credit card to earn rewards points when you are unable to pay back the sums that you borrow. Using a credit card reward system irresponsibly can cost you more in interest than you earn in incentives. But if you manage your credit card reward program effectively, you can receive many useful free products and services.