So here I am providing you the listing of some of the benefits of credit cards
Buy online. It is the quickest and easiest way, and you are protected against credit card fraud.
Withdraw cash 24 hours a day, anywhere in the world.
Usually, there is an interest-free repayment period, which you can use
to repay your debt in full, interest-free.
Repay in regular installments. Typically, these incur interest.
Some cards provide purchase protection insurance, which pays out if something you have bought with the card is lost, damaged, or stolen within ninety days of the date of purchase.
One of the main benefits of using a credit card rather than a debit card is the protection provided by the Consumer Credit Act. This says that if you have problems with goods or services you can get your money back from the card issuer if you can't get it back from the supplier.
A credit card can cost nothing - if you pick a card that doesn't charge an annual fee and you always pay the bill in full every month.
A credit card can save you money if you choose one that earns you cash every time you buy something. How much cash you get back is calculated as a small percentage of the amount you have spent on the card. Some cards offer incentives other than cash - Air Miles or shopping vouchers, for instance.
Even if you do not pay your monthly bill in full, a credit card can be cheaper than running an overdraft on your current account, especially if your bank charges a monthly fee as well as interest when you overdraw.
Using a credit card can work out cheaper than using traveler’s cheque or foreign currency to pay for things abroad. This is because the exchange rate used by card companies to convert foreign spending into sterling is better than normal tourist rates. However, because of credit card charges for cash withdrawals, a debit card is better if you want to use plastic to buy currency, whether over the counter or from a foreign cash-machine.
You can give to charity for free if you sign up for a charity credit card.
Credit cards are often cheaper than loans for short-term borrowing. You pay interest on the remaining debt, not the full amount - and there are no early redemption penalties.
Their consolidated accounting enables one cheque to settle multiple transactions – while all appear neatly on one pre-prepared statement each month.
Credit cards offer flexibility to match uneven income and expenditure patterns: you choose what to pay off each month, between the minimum and the total outstanding.
There is an automatic ‘interest free' period per statement period.
Credit cards can include additional benefits like insurance cover on purchases, cash-back, AirMiles, Nectar or Reward points, and holiday discounts.
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Use the credit card responsibly |
