What are the facilities a credit cards can give?
Personal Finance November 7th, 2007If you are an American you get enough unwanted credit cards offers in the mail every day. That means you are spending your 75% time deleting all the unwanted mails from different credit card companies. If you are an average American, that means you possess 4 credit cards and you have so many options to choose. But how will you judge which credit cards is best for you. Do you need a charge card, credit card, or a debit cards Frequent flier miles, gift certificates, or cash back? The number of choices most of the American faces each day is very huge and they spend their money on credit cards is over-whelming. According to some credit card experts following are the best possible options for credit cards.
Credit card is one of the best financial tools which offer many benefits:
- It is very safe and convenient to use and carry than cash.
- Credit cards give the facility to purchase any goods now and pay them later
- They have valuable consumer protections under the law
- Major credit cards can be used in any parts of the world
- It gives the advantage to withdraw some cash at the time of emergency.
- You can use credit cards for hotel and travel reservation.
- If you are not satisfied with any purchase you can withhold the payment until the problem is resolved.
At the same time it is a big responsibility having a credit card. You have to use the credit card carefully otherwise you may owe more than you can repay and that will effect in your credit report and will create credit problem for yourself which can be difficult to fix.
The online banks have given the facility to their customers to download credit card application for taking credits. The american express rewards cards are very valuable due to the great offers of benefits and incentives for the customers. The credit cards bad credit, offered by different credit card companies may entrap the credit card users into the worst state of bankruptcy. The rewards visa offers are very valuable for the clients due to great amount of profitability. The bank of america card is very feasible with great incentives for the customers, offering very profitable shares on reasonable interest rates.
November 7th, 2007 at 12:35 am
You have written the truth, hopefully we can learn from this post for a worry-less future…Thanks and keep up the good job:)
November 7th, 2007 at 12:39 am
Good Informative content
November 7th, 2007 at 1:14 am
Yes you are right, Credit card is one of the best financial tools but can be the worst one if not managed properly.
November 7th, 2007 at 2:12 am
Yes, if one can capitalize the advantages of credit card, its a worthy one. Its a very sensitive financial instrument, so be cautious every time.
November 7th, 2007 at 2:15 am
Dear Author
to get the daily mail and phone calls for the credit card turn to a daily routine of our life, its not the problem of the American only, being an Indian i too face the same problem each day, each and every day they call me and try to insists me to take the credit card - but my parents are not allowing me to take it, as per their conversation 2 or 3 times they had suffer a bad experience from this credit card, they told me that without using the credit card they had to pay a huge bill amount - and bound to cancel it, but few points in this article about the advantages of credit card really attracts me - but tell me how can i make my parents understand about the utilities of ‘Credit Card’ - Thanks to author for such a good article - Go ahead - we will be waiting to hear a lot from your side.
November 7th, 2007 at 2:44 am
See, if you pay the bill within the time period then there will not be a problem. But if you late at your payment then they will charge the full amount even only for one day delay. So I will tell everybody to pay the bill within the time period to avoid extra charges.
Few months ago I deposited a cheque in the HDFC drop box to pay the Credit Card bill but the bill did not get clearance within the last date. So they charged me 366/- rs for one day delay. Then I sent them a mail about the problem and then they waived the fine from my bill. So some time this type problem may happen. Though In that case I was little late at the payment. Otherwise, I think if you have a credit card, you will get the facility.
When your parents are not giving you the permission then I think you should follow the advice. Some people have bitter experience and some people are enjoying with the card facilities. Even some person are earning from it.
I hope you know that you can withdraw cash with the help of credit card. like if you have 80,000 credit limit then you will be able to draw 40% Of the credit limit ( may vary bank to bank) that means rs 24000/. Few persons lending that money to another person for one month or say 50 days. And for that money they are charging interest. When the person (who took the money) repays the amount with the interest they pay that amount to the bank. In this way they are earning money. Are not they intelligent?