 TITLE: Do You Really Need a Credit Card? CONTENT: What Are the Benefits of Having a Credit Card?\n----------------------------------------------\nCredit cards can help you do a lot more than just buy things. Here are some other benefits of having a credit card.\n*   **Build credit**: By giving you an opportunity to show how well you manage credit, credit cards are a useful tool to build credit. Most credit card issuers will report your payment activity and account information to the three consumer credit bureaus: Experian, TransUnion and Equifax. Because credit cards give you the flexibility to pay your full balance each month or just pay the minimum, they are a good indicator of how well you manage credit. When you make all your payments on time and avoid maxing out your credit limit, credit cards can help you build a solid credit history.\n*   **Rewards and sign-up bonuses**: Rewards credit cards give you rewards—typically cash back, cash bonuses, miles you can use to pay for travel or points you can use for purchases—based on how much you spend on the card. For instance, you might earn a $500 cash bonus if you charge $3,000 on the card in the first three months after opening your account. Using a rewards credit card wisely can help you pay for travel or other purchases. Just be sure the rewards don't tempt you to spend more than you can afford or build up a big balance you can't pay off.\n*   **Purchasing power**: Credit cards can provide a financial cushion to help you handle emergencies. For example, if your car needs an expensive repair and you don't have the savings to pay for it, using a credit card could get you back on the road quickly so you don't have to borrow from a friend or leave your car in the shop until you can pay for the work. A credit card with a 0% introductory annual percentage rate (APR) on purchases could help you finance big purchases, such as appliances, furniture or a vacation, and pay for them over the introductory APR period without accruing any interest.\n*   **Fraud protection**: Using a credit card can provide more security than carrying cash or using a debit card. For example, if someone steals your credit card or card number and makes an unauthorized purchase, federal law limits your liability to $50, and many credit card issuers won't hold you liable at all. Card issuers may also offer cardholders other types of fraud protection, such as dark web monitoring for your personal information, virtual credit card numbers you can use to pay online, and contactless payments, all of which can help keep your card and your identity more secure.\n*   **Other protections**: Paying with a credit card can help protect you in other ways. For instance, credit cards that offer extended warranties, or purchase protection for lost or stolen items you purchase with the card, can save you money and headaches. If you buy something with a credit card and the product shows up damaged, isn't as advertised or never shows up at all, you can dispute the charge with the credit card company to have it removed. Some credit cards also offer travel insurance or rental car insurance when you use the card to purchase travel or rent a car. END