The first benefit of having a credit card is the ability to keep close watch on your purchases. When you are walking around with cash in your pocket it is very easy to spend your money quickly without realizing you are doing it. A credit card helps you track your money with a two-fold method. The first part of the method is actually reaching in your wallet and pulling out your credit card.

This makes you very aware of the money that you are spending. For whatever reason, many people think a bit harder about charging a purchase on their credit card than they do when they have cash in their pocket.

The second method for tracking your purchases is through your monthly statement. You have a complete rundown of everything you have spent your money on throughout the month. If you are trying to budget your money, having a monthly list of charges makes it glaringly obvious where you may be wasting money. You can total up the number of times you purchased a three dollar cup of coffee and see what that seemingly harmless purchase can add up to in a month.

Another benefit of having a credit card is the availability of services that are only open to you if you have a credit card. It is virtually impossible to rent a car or hotel room without a credit card. A world is closed to you if you cannot produce a credit card.

The credit card company protects your purchases, as well. Some credit card companies even provide insurance for purchases and even extend warranties. Your credit card company will protect you if you are wrongfully charged also. And if your card is stolen most credit card companies will not hold you responsible for the purchases made by the thief.

The bottom line is that responsible credit card ownership provides many benefits to the consumer. If you are disciplined with your card you will find that the perks far outweigh any downside. Pay off your purchases at the end of every month and you will find that you are able to acquire all the benefits without paying the price.