10 Reasons You Need a Credit Card

3. Emergency Money

A credit card provides you with instant access to money in case of an emergency. Most of us carry around the amount of cash we believe we will need for one particular day and not enough for an emergency. If you're away from home and get stranded late at night and need to get a hotel room, you don't have to worry about whether you have enough cash on hand. A credit card can provide an instant solution to paying off many unexpected expenses until you have the time to transfer the money from your bank account.

4. Rewards

There are many credit cards that provide a reward when you use them. This can be anything from cash back to travel points good for free airline tickets. By using a credit card that gives you an award, you can actually earn money.

5. History of Purchases

For those who are not good at keeping track of their receipts, a credit card gives you a complete and detailed summary of your spending each month without the effort of recording every purchase as you would have to do if you paid in cash. This record can be an easy way to help you create a budget and know where your money is going. It can also be an excellent reference at tax time for charitable deductions.

6. No Fear of Loss or Theft

If you are traveling and you lose your cash or are robbed, you've lost all that money forever. If your credit card is lost or stolen and you report it immediately, you are out a maximum of $50 (and most companies will waive even this fee).