A credit card is a sleek rectangular plastic slab issued by banks that permits you to borrow money for goods and services. The money borrows from the banks on certain conditions that you have to pay back with interest on top of that and additional charges (if any) within a specific time.
The banks may also have their set of protocols under which the card is being issued. Let’s say, the cardholders customarily pre-set the fund limits, depending upon the credit rating.
Today, the majority of businesses allows the customers to make purchases using a credit card that is why it has become one of the most popular payment methods to buy customer goods and services.
Various credit cards also offer incentives and cash back on purchases such as hotel room rentals, airline miles, merchandise, gift certificates, etc giving the customers a good reason to own one.
It is not only convenient to use but also give other benefits too, let’s take a look at some ways that a credit card can make your life easier:
Sign-Up Bonuses, Rewards, and Cash Backs!
Many credit cards offer sign-up bonus for signing up like huge bonus points, complimentary flight tickets, and other perks such as promotions and lower interest rates. However, not all card services could be the same, so you have to understand all the terms and conditions before registering.
Some possibilities require meeting the particular needs, for instance, minimum expenses in the initial months. However, if these needs match your spending habits, then a sign-up bonus can be an excellent value.
Many credit cards also offer great reward points that you can spend on all kinds of things like merchandise, travel, gift cards, etc. You can also redeem the reward points for cash back and other services that some cardholder provider offers. In addition, certain places can give you lower or higher rates for specific purchases while bonus periods, depending on where you shop.
However, you have to make sure to check if there is an annual fee or any other condition that forces you to make an additional purchase.
View Statement Online
When you visit the bank to issue a credit card, you may get the option to choose viewing statements of your transactions online. You can view your balance wherever and whenever you want with internet access via email.
Even if you are traveling, let’s say Hawaii or near-by place, personal banking allows you to keep a check on your expenses by viewing statements online.
It Is Safe To Use
Using credit cards makes it much easier to protect your money from loss, unlike debit cards. If someone steals your debit card, the funds can be missing in your account immediately, leaving your creditors dissatisfied. The process of investigation can take a while to restore the money into the bank account.
On the other hand, if due to any mishap done in your credit card, you will not go out of any money. You only have to notify the bank regarding fraud and don’t pay for any transaction until the matter is being resolved.
It has its Grace Period
Initially, credit cards permit a zero-interest loan for a month (30 days) or less. It doesn’t need you to have the money for immediate purchase. It has its grace period set to do payment planning. So, make sure to use the grace period wisely as credit cards work excellent if you pay back as much as you can every month.
If you are using your credit card sensibly, it can be enjoyed the best being aware of the ability to pay your monthly bills before the due date!