Although numerous problems, such as fraud and deception, are associated with credit cards, such plastic monies are normally very handy and definitely be of great help in the financial dealings of people having them.
Credit Card Complimentary: Among the various benefits of using a credit card, the several sops or free things offered by the credit card companies to persuade people to obtain or use specific plastic money is prominent. In fact, the credit card firms do not fancy competitions with their business rivals by compromising on the interest fees and other expenses related to acquiring a credit card. As a result, they offer other freebies to the consumers as that are practically cheaper to them in comparison with reducing interest rates and the fees charged for the credit cards. In fact, quite a few of these freebies offered by the credit card companies are often very useful to the consumers provided they continue to clear their dues in full every month. On the contrary, if one does not pay the balance amount regularly each month, the huge interest on the money used up that the card holder will be required to pay to the credit card company will surely overshadow the worth of the free stuff offered by the company for using their plastic money.
Different credit card companies offer different freebies, each trying to outsmart the other in luring the consumer to use their specific plastic money. Again, some freebies are very common and offered almost by all companies. In fact, the free stuff offered by the credit card companies is a part of their marketing strategy. Some of the freebies offered by the different credit card companies are as follows:
Possessing a credit card and in some manners the back up of the privacy problems they fetch may possibly assist you in putting your business and personal funds in order. When you rate all things that you probably are able to, you will have an approximately absolute documentation together with your checking account register of how you spent your money. It is important to note that such a practice may prove to be very useful while paying taxes.
The credit card holders' exclusive privilege to issue a stop payment order is possibly the greatest benefit of using the plastic money. In fact, the stop-payment rights enable the credit card holder to keep away from being stuck in different kinds of purchases. For instance, people having credit cards normally make payments through the plastic money while purchasing items by mail or phone order. Contrary to making payments through cheques, when one makes a payment for a mail or phone order purchase, he or she is unlikely to be duped by the seller. In the event, they do not receive the precise item they had ordered for; people using credit cards can stop the payment on the invoice and get a refund of the entire money.
Using credit cards have other advantages too and a better credit rating is one such benefit. When an individual regularly uses his or her credit card to make payments for purchases and is punctual in making all payments, it helps the user's credit card rating by demonstrating that he or she fulfills their credit obligations in an appropriate manner. On the contrary, when the credit card commitments are not fulfilled in an opportune method, the credit card rating of the individual in harmed.
Credit card users enjoy another important advantage and do not have to make frequent visits to the banks whenever they require money. Visiting the bank every time you need cash is no doubt an annoying task. In addition to avoiding such frequent visits to the bank for cash and be able to make payments for purchases with plastic money, the credit card users are able to avail cash in advance. This is especially a great advantage during the weekends when you are away on vacation and nowhere near the bank that maintains your checking account.
Several credit card providers offer theft, damage and other service contract (warranty) security on making payments for purchases by means of their plastic money. Such prearrangements are very useful advantages that many of us frequently do not remember at times when they may actually be helpful. For instance, if a home computer purchased with a credit card crashes within two weeks after the expiry of the manufacturer's warranty, the free warranty offered on the purchase of the credit card will most likely pay for the expenses incurred in repairing the computer provided the buyer retains the original purchase receipt. In order to avail the benefits of the warranty and protection against theft schemes, the credit card holder needs to meticulously follow the rather complicated rules of the credit card issuing firms.
Possessing a credit card enables the holder to grab any bargain irrespective of whether is a couch or a trip to Paris right away. While paying for the bargain with the credit card, you need not be concerned whether your cheque will be bounced back by your bank.
When you pay for your purchases through a credit card, the purchased items are likely to cost lesser. Hence, Float is described as the use of money that the credit card holder has used up prior to paying the expense invoice. In fact, the credit card holder is free to use that money to earn interest for till it is time to pay the invoice or bill.