Many Australians are hoarding credit cards and it could be doing them damage

Posted by Bobby Morris on May 23rd, 2018 — Posted in Perth News

Many of us want to get a credit card. The most obvious benefit of using a credit card, whether you are a business or private individual, is cash flow flexibility. For business owners who are just starting up, credit card helps a lot when expenses start mounting up. That’s because businesses that are just starting out may take a while to get their cash flowing.

Many Australians have multiple credit card accounts.

If you go through some tough times, a credit card can get you over those challenging periods. For instance, starting businesses need to advertise and promote their company to build brand awareness. However, you need money to do that. The reasons for needing that extra cash are many and varied but having the cash available through a business credit card can be a lifesaver in many instances.

Accountability is another reason why someone needs a credit card. Many banks offer business credit cards with individual cards and spending limits for each employee. If you run a business, this allows you to make sure none of your employees are going over budget. Additionally, using credit cards instead of cash means no expenses fall through the cracks. Everything is listed on your monthly statement.

Freebies and promos are also the advantages of having credit card. Almost all business credit cards offer some type of rewards programs. These rewards often include plane and hotel tickers, clothing, and more.

However, having a credit card also has disadvantages. As with all kinds of credit, there is the opportunity to misuse it and get into debt. To avoid this situation, it takes planning and discipline.

Before getting a card, you should sit down and determine just what it’s going to be used for. According to a report, many Australians are hoarding credit cards and it could cause them damage.

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