Is it good to use a credit card? What are the advantages of having them as a payment method? How can I benefit from them? Do I need it? – these are just some of the questions that come up to a mind of a person who thinks about picking that first credit card from the bank. Let’s take a look at some of the benefits of having a credit card.
Simple use
A credit card is a non-cash payment instrument that serves as a convenient means of short-term consumer lending. Credit cards are the most widespread way to pay for goods and services that are always at your disposal by providing you with security, simplicity, and commodity in everyday life or even while traveling around the world.
It’s important to note that this is the type of payment that all stores accept! When you do not have cash with you – then just pay with the card! Credit cards are actually accepted in more places than checks and are generally easier to use. Once you took your first credit card you receive your PIN and all you have to do is either put the card into the ATM and get your money or pay at stores without actually having money in your hands.
Saving time while using
One of the main advantages of using credit cards is that they are very convenient and you will not have to carry a lot of cash with them. Of course, this does not mean that you fill the wallet with a number of plastic cards because their quantity is related to consumption!
It’s better to use only a small number of cards because it will be easier to control your money. Credit cards have a synonym and it is TIME-SAVING: you can raise money at ATM and/or bank counters at home and even abroad. Your money is always at your disposal!
Greater security in case of loss than when carrying cash
As for the safety issues, if you lose the money you have in your purse or you lose your whole wallet there is little chance that you will ever get it back.
The cards are a different thing because, in principle, there is no big loss: if you lose your credit card you can easily report its loss, cancel it, and protect yourself from unauthorized use in time. So it’s simple: if you lose cash, you do not have it anymore. If you lose a credit card, you can cancel it.
Availability of all funds from the account 24 hours a day
Regardless of whether you have chosen to use a credit card that is, for example, fully secured by a term deposit, so that you essentially use the available own funds, or have chosen to use a credit card with an approved limit of spending that does not require additional collateral, the primary advantage of a credit card is the ability to satisfy, for example, unplanned or unexpected needs.
The delivery of funds is carried out with the help of special devices – terminals and ATMs, which implies the possibility of withdrawal at any desired time (even for 24 hours a day), anywhere (in any country), the required amount (in other currencies). This is very important when any force majeure occurs. A credit card does not have “working hours” – it is your friend, always available.
Payment even when there is currently not enough money in the account (credit cards)
The use of a credit card is completely different than using a debit card – during the accounting period the client actually (virtually) lends money from the bank and pays goods and services with its money, and at the end of the month settles the account.
Credit cards are desirable if you want to pay something in installments or postpone your payment for the next month. It’s important to know how the credit card functions, and what are the conditions when we begin to use it.
Credit cards allow you to use the funds lent by the issuing bank to the limit specified by a previously concluded contract. For this reason, they are especially suitable for larger purchases, which, for example, you would not be able to get from just one monthly salary. However, if you are concerned that the use of your card might be excessive, you may be able to limit your daily spending on ATMs and POS terminals. It can help you spend as much as you can and as much as you planned.
So, to conclude…
The key to selecting your first credit card depends on the type of service you want to use. Also, be sure of all the bank’s terms when picking up your type of a credit card. The credit card brings exceptional financial flexibility, affordability of money and numerous benefits, but irresponsible borrowing at typically high-interest rates can be very dangerous.
In addition to its basic credit functions, the credit card can also have fun and loyalty functions for its users, which depends on the bank’s policy that issued the card. For example, a bank can allow customers to buy at certain places with a significant discount, to use different services for free (insurance, technical inspection, etc) for free. By taking a credit card you will have more resources at your disposal.
Advice is that if you are new and inexperienced in using this type of service, make sure that you have chosen the most favorable option by considering the terms of the whole card offer on the market or by consulting with a professional or highly experienced person. Once you do it – just enjoy all the benefits!