They have certainly changed our lives. Once we paid by cheque or in cash but today we have credit cards as well. In fact cheques are rapidly slipping down the pecking order with far fewer being used. Why is that? Well here are just some of the uses and benefits of using a credit card;
Safety
Grace period
Frequent flyer points
Insurance
Convenience
Online universal shopping
Emergencies
The obvious use is to protect our assets, for safety reasons. If you carry cash it can be lost or stolen. And while a credit card can also be lost or stolen it is far easier to obtain a replacement than to recover your precious cash.
Credit card owners get a grace period, a time when they are not charged for using their card. Provided they repay the amount owing before the end of this grace period - usually up to several weeks - the purchase attracts no interest.
Getting something for nothing is often a myth but in the case of a credit card which is linked to a programme such as frequent flyer points, using your credit card can bring serious rewards. The deal is usually that the more you spend the greater the number of points you receive. Many credit card holders gain top benefits as a result of using their credit card.
Travel insurance is always important and especially when planning a major trip overseas. Some companies offer free travel insurance if bookings are made using a specific credit card. Its often said theres no such thing as a free lunch but for the credit card holder, in this case there most certainly is a seat at the table.
The most common use of a credit card is for the purpose of convenience. Youre out somewhere and by chance have the opportunity to purchase something - goods or services - and havent got the necessary cash. Your credit card is in your wallet or purse. It is so convenient to make the purchase there and then.
Once we shopped locally and possibly via a catalogue which arrived in the mail. Of course those forms of shopping still exist but thanks to online shopping, the world is now our shopping mall. In fact whole retailing empires are sometimes only available online. Whatever you want can be purchased online and often in a country on the other side of the world. To make the purchase, your credit card is the key. Use it to make the payment and then receive your item. Its easy to become an international shopper without leaving home.
Finally there are the emergencies we sometimes face in life. A serious accident, a vehicle breakdown or the need to suddenly travel can occur without warning. Having a credit card means we can make the necessary arrangements instantly and concentrate on working through the emergency.