subject: Know About Benefits Of Credit Card [print this page] A Credit card is plastic card with a magnetic strip on the rear side of it. Each credit card has a unique 16 digit number to make a distinction between other credit cards. This gives the owner and the issuer the safety and no uncertainty state. The amount to be spent by the customer by way of credit card is decided when the credit card is purchased. Such a limit is called Credit Limit. This limit is determined on the base of the prerequisite and the creditability of the holder.
The card is used by the customers to buy goods and services on credit from the vendors, where in the amount spent is paid by the Credit card issuer on behalf of the holder. This amount is repaid by the holder at a specified period agreed upon by both at the time of credit card purchase. Each Credit card is given out with a different credit card offer which will suit different classes of customers. The benefits of a credit card are listed down
I. A credit card in recent times helps an individual to do purchasing of goods and services at the deliberation of it even if he or she does not carry cash along. This card is permanently sitting in the purse of all to be utilised as much the credit limit allows.
II. A credit card gives the safety that cash cant offer. It is due to the reason even if the credit card is lost, the grievance can be done with the issuer who will close the card from further transacting and issue the holder a new one but if the cash is lost, it is lost forever, no guarantee of it coming back.
III. If a credit card is being used for all the monetary dealings, it becomes easy to track the expenditure in comparison to the actual cash transaction and will help in reducing the expense that is not necessary.
IV. The credit card offers you the capacity of spending before you have the cash to pay for the purchase. A person can do a small as well as big purchase which fits in to his credit limit.
V. Now a day to encourage the use of credit cards the issuers are giving reward points on every purchase that can be used for other utilities like airline miles or a percentage of the money spent is returned to them.
VI. A credit card offers a status symbol amongst the holders. This is in case of cards like Gold Credit card, Titanium Credit Card, Platinum Credit Card, Business Credit card as these are of high value and credit limit, not everyone can access it.
VII. A credit card can be used for online transactions as compared to cash which cannot be used for online transactions
Credit cards have made life easier for individuals and are a great instrument, but if credit cards aren't utilised properly they can be a big monetary saddle. If anyone wants to own credit cards, he or she must remember these simple rules:
Keep track of all purchases.
Don't spend over the budget.
Pay off balance on all credit cards at the end of every month.
Don't loan credit card or give out your credit card information to anyone but reliable companies.
