The Indispensible Credit Card

Credit cards have almost become indispensable today. With too many commitments to fulfill and limited time on hand, it’s not always possible to rush to bank or ATM to fetch money for every single transaction. The biggest advantage credit cards offer is the flexibility and ease of making purchases and payments without having to carry cash everywhere you go. Unlike Debit cards, credit card gives you the benefit of using the cash without deducting the amount from your existing bank accounts. Though at times the word ‘Charge card’ is used to describe credit card, the difference is that the charge card requires the card holder to pay the money borrowed/used on charge card to be paid in full by every month ending. Whereas the money used through Credit card can be termed as a loan that the user takes from the lender bank and hence the money borrowed can be revolved and the payment can be delayed for a fee in the form of rate of interest payable. The rate of interest on credit card used would vary depending on the amount used, the time gap between the usage of credit card and the payment of loan and of course the type of credit card one has taken up.

If you are disciplined enough to pay the amount spend on credit cards on time and have managed to maintain good credit throughout then the credit cards are one the best utilities to invest in. Recent competition in the banking sector has resulted in many competitive interest rates, offers and advantages on credit cards. Its worthwhile studying credit card offers by some of the known and reputed banks before you apply for your own. Have a look at some of the advantages one can avail with the Credit card -

* There are number of options while applying for credit cards. Depending on the requirement one can apply for any of these categories: Business credit cards, Gasoline credit cards, Prepaid credit cards, Airline Miles and Travel rewards credit cards, Low interest rate credit cards etc

* Places where the cash is not accepted as a mode of payment, credit cards becomes your rescuer. Even for purchases like Hotel bookings and car rentals one needs a credit card. Though at times payments are accepted in cash, credit card is required as safety deposit.

* Most of the credit cards, offer purchase protection on it. So if you buy anything precious and loose it on way or find it faulty you have 100% insurance on it.

* High interest rates are considered as one of biggest and probably the only disadvantage with credit cards. But with Balance transfer facility you can transfer your loan amount from the high interest rate credit card to a relatively low inters rate credit card with 0% interest rate.

* In case you loose money and or it’s stolen you have no other option but to let go that loss but in case your credit is lost, stolen or damaged you can report the issuer and get a new card.