Credit card firms have received a lot of bad press when it comes to credit card disclosures and fees lately. A number of complaints by consumers and businesses have Congress poised to enact new and much needed credit card reform to improve industry standards for disclosing all the fees, interest rate increases and penalties that can trap borrowers under mounds of debt.

With all of that being said, credit cards are still excellent financial tools that can offer many benefits when used responsibly by consumers and businesses. Assuming you are a consumer that pays your credit card balance in full every month and uses your credit responsibly, here are some great benefits of why you should carry a credit card.

Top Reasons to Have a Credit Card:

1. Internet Purchases -- When I think of shopping for a bargain, the first thing that comes to my mind is shopping on the internet. Internet businesses do not have a lot of overhead expenses, so businesses are able to pass these savings on to the consumer in the form of discounted sale prices. However in some instances, the only method of payment for these types of purchases is with a credit card. So consumers without a credit card may end up paying a lot more at the local store for the exact product that could have purchased online.
2. Purchase Protection -- If you make a purchase and pay with cash and you never receive your item; most generally you are just out of luck. Your limited options would require lots of time and even more money and the likelihood that you would ever receive any of your money back is slim to none. With a credit card, if don't receive your purchase you should contact your credit card company and dispute the charge. Your credit card company will launch an investigation and issue a chargeback if necessary. Basically a chargeback means your credit card company will reverse the sale to the merchant and issue your credit card a refund. There are a number of reasons for a chargeback. Be sure to read our article -- 'Chargebacks: What is a Credit Card Chargeback?' -- for more information about credit card chargebacks and how they may effect you.
3. Build Your Credit History and Raise Your Credit Score -- The only way to establish a credit history is to use your credit. Being responsible with the credit you use is vital for maintaining a good credit history. A credit card, when used responsibly, can help establish and maintain a good credit history and credit score which can mean significant savings when it comes to finance charges. A person with excellent credit and a high credit score will be rewarded with lower interest rates, which could mean a savings of thousands of dollars in interest charges. It can also mean you will pay less for things such as insurance products and may also help keep you from being required to put down security deposits for things like cell phones, cable service and other household utilities.
4. Loss or Theft Protection -- If you carry a lot of cash, you can become a prime target for thieves, and if you are robbed or simply just lose your wallet, you probably will never see any of that money again. With a credit card, if your credit card would become lost or stolen and you report it immediately, you are out a maximum of $50. (Some companies will waive this amount if you notify them in a timely fashion.)
5. Rewards and Incentives -- There are a number of good credit card offers that offer some kind of reward for using them. You can earn things like free airline travel, cash back rebates, free hotel stays, rebates on gas purchases, reward points redeemable for free stuff and lots more. These incentives can be very rewarding if you are someone you pays off your credit card balances every month. If you choose to carry a balance, the amount of interest you will pay will be more than the rewards or incentives you will earn, so you should look into a Low Fixed APR credit card, instead of a credit card with rewards.
6. Money for Emergencies -- Carrying around a lot of cash can encourage unnecessary spending and it can be very dangerous from a security standpoint. That is why a lot of people only want to carry around a limited amount of cash, making if hard to be prepared for those unexpected emergency expenses. With a credit card you don't have to worry about whether you have enough cash in your pocket. No one can predict when unexpected expense will occur, but a credit card can provide an instant solution until you have time to transfer the money from your bank account.

A credit card can be a great financial tool that offers great rewards to those that use them responsible. If you have the discipline to pay off your balance in full each month, carrying a credit card makes great financial sense. Remember, maintaining a good credit history is a life long journey that takes a lot of work and discipline on your part, but when used responsibly, the rewards and savings of good credit are endless.