Why are credit cards useful

Why are credit cards useful

As we move towards an increasingly paperless economy, that little plastic card can be a boon in many ways and also a bane in others. Here are a few benefits that credit cards give us in the modern day world where e-commerce rules.

While there is a flip side to the use of credit cards, the problems come mostly with misusing or abusing your credit card. When used sensibly and responsibly, credit cards can be very beneficial.

Any credit card companies offer lucrative sign-up bonuses, and credit card spends often convert into points that can be redeemed when you shop or even accumulated and redeemed against high-value purchases.

In fact, most large airline companies also tie up with the credit card issuing banks or offer their credit cards which convert money spent into points that can be redeemed for air travel. This would prove to be a lucrative option for business people and others who travel frequently.

Owing to tie ups between the card provider and the merchant, many credit cards offer money back options, that although may seem like a small percentage of sales can add up significantly over time.

From the point of safety, when compared with fraudulent debit card use, you can inform the credit card company as soon as you receive a notification and the payment can be stopped. To that extent, it may be safer using a credit card than a debit card.

The significant benefit to using a credit card is that there is a certain grace period within which you can make your payment. This extension of credit can prove to be very useful when purchases need to be made urgently. The money remains in your account until the payment date specified, which is usually between 30 and 45 days from when you made the payment. However, it is very important to make the payments on time to avoid unnecessary charges being levied on your credit card account.

Another ease of using credit cards is that they are widely accepted at large and small retailers and also greatly facilitate online shopping.