Love it or hate it, you cannot ignore your credit card. Statistics reveal that more than 80 percent of U.S. household uses at least one credit card. There must be some reasons behind such wide acceptance, overcoming those dreaded stories of debt traps.

Like every good things in life, credit card is beneficial when used wisely and within limit. A responsible user uses credit card to avail different benefits like reward points, grace period and cash back.

Credit cards are convenient and safe. You need not carry cash so there is no fear of running out of money, within credit limit of course, while shopping.

Use your credit card to get an idea of your monthly expenses. Monthly bill of the credit card acts as master receipt of most expenses. There are credit cards that offer annual or quarterly summaries of your statements. These summaries categorize your spending under headings like dining, entertainment, retail etc.

Inform about stolen or lost credit card within specified period. Most card companies offer zero liability policy that protects you from paying for unauthorized spending made with your card.

Credit card helps to build your credit score. This is true for responsible users of credit cards. By using your card sensibly and paying off debts regularly earns you high credit score.

This high score makes you credit worthy to other lenders. On the contrary, an irresponsible user burdened with huge outstanding credit resulting from reckless use of credit card is liable to face rejection from other lenders.

Grace period of credit card is referred to the interest free period offered by it. Depending on your billing date you can avail a period of 20 to 30 days within which you credit card would not charge interest.

Such “float”, as it is known popularly, is very useful to meet unexpected expenses that you can pay off within very short period. Float of a credit card virtually enables you to avail interest free loan during crisis period.

Companies offering credit cards are eager to retain responsible card holders. When you are using your card sensibly and maintaining low or no outstanding, you can negotiate with them. Such negotiations may involve lowering of interest rate, waiving late payment penalty or annual fees.