Paying with Plastic: the Many Benefits of Credit Cards

3 girls with shopping bags holding credit cardsCold, hard cash seems to be a thing of the past, as more and more people are choosing to pay with debit or credit cards. There is a very good reason why credit cards are popular, and why they are an excellent asset to have. Not only do they cut down on the change in your pocket, they provide a free 30-day loan, extra benefits like points or cash back, payment protection and are a superb emergency backup.

Who doesn’t love free money?

Many payday loan companies will charge you upwards of 15 to 20 per cent on a short-term loan; if you choose to pay off your credit card each month, you are in essence getting “free” money – as you do not have to pay any interest on it. This is beneficial if you do not have the money right now for an item, but will do so at the end of the month.

Point me to some cash back!

Some current credit card companies are including incentives to use their card; whether it’s a simple percentage cash back (that is usually debited to your bill at the end of the year) or a way to rack up points toward an item, such as a gas card or a gift certificate, these cards are great! You would normally purchase groceries, gas and clothing, and now you’re being rewarded to make those purchases with your credit card.

Secure, safe shopping

If at any time you do not receive something that you have paid for with your credit card, you might be able to get a refund from the card issuer. This is called payment protection, and is a feature with many cards. Items get lost in the mail, and some fly-by-night companies fail to provide merchandise on purpose – in most cases, these purchases can be reimbursed if your credit card company supports payment protection.

Oh no! No worries …

You’re on vacation and your airline has lost your luggage; you have to purchase a new roof for your home, and don’t have the savings … these – and much more – are excellent reasons why you should have a credit card. You will always have that backup just in case you need it.
All in all, credit cards are a great benefit to your wallet!

Posted on March 4, 2014 by in Credit Cards

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