Credit cards are one of the most useful yet deadliest forms of facilities available. Besides adding to the convenience they usually come with an alarming rate of interest which is pretty high on any pocket. However, credit cards are one of the widely used payment modes due to the benefits that comes attached with them. Although, it is a safe tool once it is used judiciously and with proper control, there are moments when they can be a great savior. For instance, it may be a time when you are short of cash or your own debit card is not accepted. Usually credit cards are accepted globally but not debit cards. Hence, for your international travel, credit cards can be the best travel companion.
On the other hand, for instance you might be out for buying a particular element for your house, for example laminate floor installation. You might have had a budget for the same and were carrying the cash with you along with your credit card. However, once you went through the option, the preferred one seemed to be out of your budget. It is here when you can use the credit card and make the additional payment using your card and make sure you do not fall short of purchasing your favorite laminates. There are host of other instances wherein a credit card would be the best suited form of payment and let you remain safe for making your transactions too. Overall, like every tool has a positive and a negative aspect, the credit cards surely have their own. It is up to the user to make sure that the facility is used wisely and on the contrary he is equipped with such a facility in times of urgent requirements.
If you require quick money to make a payment then credit cards are the best solution for you. Credit cards are an easy method of payment issued by the banks on the account holder’s name. It is based on the account holder’s name to repay the money in the form of credit upon purchase from any trader or merchant. The card holder can also lend money under a stipulated time period by which he has to repay the money bank. Money is issued by the bank after certain account related benchmarks are followed.
Credits cards hold several importances apart from giving the authority of easy credit. On a personal front, credit cards are mandatory for emergency purposes if one has medical issues. Credit cards are accepted widely anywhere and everywhere from booking for gas to buying necessities for the house. Apparels and electronics can also be bought with the help of it. One can also book hotels and rent cars with the safe payment security of credit cards. What is advantageous is the timely repayment of it every month if an individual has stable income.
Another factor that can be attached to credit cards is the credit score. If a person has a reputation of being a good returner than the lenders are prone to make better offers to them in the near future the credit history also helps in mortgage loans and consumer loans given from the associated banks. If one is in urgent requirement of a flooring service in Michiana then you can call an experienced person, similarly while making an urgent payment they can rely on the credit card issued by their banks.
Using a credit card requires electronic payment steps that in return increase the gross economic growth. This is return increase the job vacancy in a given country. Using a credit card enhances the rate of consumption and also gives the merchants more production. In cases of an emergency, a credit card helps to secure the payment by providing quick purchase.
Credit cards are also used for banking facilities. Businesses can be represented financially as credit cards act as an important financial backbone. To have a credit card means extra amount of security to the bank that allows them to lend extra loans to enterprises who are seeking to expand their businesses. It gives the borrowers a positive reputation in the financial sectors.
The usage of credit cards also leads to having a detailed check on ones spending. The monthly expenditure can be tracked with the help of a card as electronic machine bills are generated for every purchase. Also one cannot use the credit cards of other individuals if one loses it. The card can be immediately blocked and the further access of it can be disabled.
One can also utilize the various offers and discounts that are availed by using credit cards. Several vendors try to increase their marketing skills by offering cash back and reduction on certain purchases. Bill payments in restaurants and theaters can also be matched with various alluring offers that attract the customers.
To select a credit card one needs to be wise and not sign up for every offer that one receives. The nature of spending and family requirements should be kept in tab. One can get indulged in greed which can be curbed down with smart spending.
Overseas travel can be expensive regardless of whether you’re touring for business purposes or traveling with your family for visiting sightseeing attractions. You’ve to take care of so many aspects while planning your itinerary like arranging for accommodation, booking flight tickets, and liaising with a foreign exchange bureau. And making these arrangements involves expenses, a significant part of which you’ll have to pay in foreign currency or currencies.
It may not be safe for you to carry cash along with you as there’s always the attendant risk of the same getting pilfered or misplaced. Hence, the best option would be to use your credit cards in order to pay for your overseas transactions. There are several advantages of carrying and using credit cards, the most significant being that your expenses are kept within a tight leash. Follow these tips for making the most of your credit cards when travelling abroad.
- Apply for a credit card that attracts zero foreign transaction fee
Most authorized credit or debit cards issued by banks and other financial institutions generally attract a fee, especially an international transaction fee whenever the same are used for footing payments overseas. Obviously, swiping these cards recurrently can inflate your total expenses. Therefore, to keep your expenses under control, it’d be practical to apply for a debit and/or credit card that do not have any surcharges for using the same abroad. Apply for a Capital One Debit/Credit Card.
- Get in touch with the card issuer
Notify the issuer of ‘zero international transaction fee’ credit card of your foreign tour and request the service provider to provide you with a contact number and address. This is to ensure that you can seek assistance in case you face any problem.
- Be conversant of exchange rates
To play it safe, abstain from signing on receipts and checks if the amount is not mentioned in the currency of the country or countries you’re visiting. At the same time, being conversant with the exchange or conversion rates of some top foreign currencies also helps.
A credit card is like ‘a good servant but a bad master’ very much like money. It is a powerful instrument of exchange which if used sensibly can go a long way in helping you to manage your expenses and maintain your standard of living even when the going is tough. On the other hand, embarking on a shopping or spending spree courtesy the credit and living beyond your means will surely lead to financial wreck and ruin. You’d need to exercise a degree of self-restraint and be sensible with respect to using a credit card for clearing personal payments. Here’s looking at some of the pros and cons of making the most of a credit card.
- Power to purchase-With a credit card in tow, your options to purchase or clear payments go up manifold. You can pay locally, nationally, overseas, via net and over phone. There are credit cards that are accepted throughout the world.
- Incentives for regular use-Using a credit card for buying groceries, shopping for clothes, purchasing electronic goods, and paying for your flight tickets earns you incentives. One such incentive is the cash-back offer. Using your card for booking flights periodically earns you frequent flyer points.
- Bailout-There are occasions when you run of cash or clearing of your salary check is delayed. It is during such embarrassing junctures, that a credit card comes in handy for clearing payments of necessities that are indispensable.
- You end up paying more-Since you’re using somebody else’s money, you’ve to pay a price for the same which is called ‘interest’. This fee or interest is over and above the principal sum you’ve borrowed. So, ultimately you’re paying more for buying a good or item.
- The burden of accruing interests-Failure to pay the first time means the entire sum gets added to your next month’s burden. And if you miss paying for a series of months, then the interest along with the principal gets compounded. Ultimately, you fall into a debt spiral or cycle which you may find extremely difficult to wriggle out of.
Rounding up, the solution lies in either totally refraining from using credit cards which might be too much of a sacrifice for a majority of people. Therefore, the more sensible way would be to use the same with restraint.
Credit cards continue to remain the most widely used mode of paying for an array of personal expenses both small and big for a great majority of people. A large number of individuals prefer to use credit cards for shopping as well as for purchasing items of daily use even though there is a lot of controversy over clearing payments using this financial tool. When you or the shopkeeper swipes the credit card, it is the money of the institution (that has offered you the plastic card) that you’re using in order to pay for your purchases while keeping your own resources intact for emergency situations.
It is this tendency or propensity to exploit others’ funds to finance your personal expenses that is the root of all evil. Banks and financial institutions that provide you with a credit card will obviously charge a fee or ‘interest’ for letting you use their money which you’ve to repay on a periodical basis. Failure to reimburse the principal along with the interest in time adds to your debt burden. Inability to repay the outstanding sum on a continual basis eventually lands you in a debt trap where there is always an amount left to be cleared even after you’ve reimbursed at a compounded rate of interest.
Needless to say, you should exercise a lot of caution while using this instrument of payment. The first and foremost, of course, is to cultivate the practice of self-restraint. With a credit card in your hand, it is very easy to get tempted and go a spending spree. It is only when you receive the mailer at the beginning of the next month detailing your purchases (or expenses) via the credit card that makes you come down to earth. Before opting for this plastic card, compare and contrast the unique facilities offered by at least 2-3 approved credit cards. Go for one that lets you spread and leverage your liabilities and be committed about clearing your monthly dues.