Are you one of the minorities of Brits that doesn’t hold a credit card? With over 60.7 million cards in circulation at the end of November 2009, they have never been more popular. If you don’t have a credit card there are many advantages to having one. Careful usage of a credit card, avoiding credit card debt, can help you manage your financial affairs more effectively and so here are ten reasons you should have a credit card.

1. You don’t have to carry cash: Which makes carrying a credit card a very convenient way of purchasing goods. No more folded wads of cash in your pocket. In addition, in cash transactions you always get change which tends to frizzle away! With credit cards you pay the exact amount, no change to burn a hole in your pocket.

2. Short term interest free credit: If you are restricted by your bank balance until your next pay day, then credit cards can help if you see something you really need to buy before you actually get paid. Most credit card deals give you between 40 and 60 days of an ‘interest free’ period which means that you only pay for your purchase when the bill comes, not at the actual time of buying.

3&4. Free travel insurance and travel benefits: Many credit card providers offer free travel insurance simply for holding a particular credit card. Others will provide travel insurance when you purchase an airline ticket or holiday using your credit card. In addition, many credit cards are accepted globally, making it easy to pay for hotels, car hire and restaurant bills; wherever in the world you are.

5. Budgeting: Credit card statements contain a lot of detail on your previous months spend. For this reason, it is easier to determine your spending habits and if they are still manageable in accordance to your income. If for any reason your habits spiralled out of control the previous month, you can use this knowledge to discipline yourself the following month.

6. Piece of Mind with Purchase Protection: A major benefit of using a credit card is that they offer purchase protection in the event that the goods you have bought are faulty, lost, stolen or in the case of a service, not delivered. Buying using other methods does not offer this level of protection. If you are looking to purchase something of particular value using a credit card offers you that extra piece of mind.

7. Buying of the Web: More and more people are now shopping online in the hope to grab the best bargains and value for money. Recent research in fact suggests that nearly 80% of British internet users ordered goods and/or services online in 2010 alone. Using credit cards to make these purchases offers a secure and convenient method of buying and various encrypted operating securities offer a safe way to store your card details online which makes future purchases quick and simple.

8. More secure: Carrying large amounts of cash on your person is risky. However, carrying a credit card is far more secure. Credit card companies’ use sophisticated technology to monitor card spending in order to protect you from identity fraud and it is easy to immediately stop your card if it is lost or stolen.

9. Improve Your Credit Score: Your credit rating can benefit from a big boost by having a credit card, though it will only help as long as you keep to the terms of your credit agreement. From this your credit report will show responsibility with credit, and it goes without saying, the better credit report you have the better rates you will have access to for mortgages and loans.

10. Credit that is Interest Free: The major credit card companies do not charge any interest if the full amount owed is repaid before the date repayment is required. Keep an eye out though as if the card company has a yearly charge then you are paying something for the credit. Importantly if you do have issues around credit card debt then seek free debt advice quickly.

So credit where credit is due!