How to Use Your Credit Cards

A credit card is simply a payment card issued by a bank to consumers to enable the consumer to pay a retailer for certain products and services on an agreed basis and the other agreed fees. This card is usually used in place of cash. It has a unique number called the account number and has a strip of four alphanumeric characters called the account name. When the customer uses this card to make a purchase, he is giving an authorization to the merchant to debit his account for the amount of money specified on the credit card. He can use the debit amount to cover the price or sometimes both the price and the amount were not paid by the customer.

Credit cards have become popular in the world today because they are easier to carry easily. They can be used anywhere like a bank ATM machine and even at the supermarket where it is the plastic money that is carried instead of coins. They are safe as they are not owned by the issuer and not controlled by the government. But what makes credit cards so attractive to many is the promise of becoming a holder of the said cash value when you pay your bills on time. The main reason being is that most people cannot afford to have the cash in the future for whatever purpose they may have.

Credit Cards also allows an individual to make purchases online. This is a very convenient thing, if you travel a lot from work or home. If you only go online for some purchases, then debit cards may not be a problem because all you do is open up your account at the particular bank where you normally make your purchases. This way, you can use your debit cards for purchases at any store. This will definitely save you some money compared to using cash for your purchases.

The advantages of using debit cards are that there is no need for an additional bank account. With this, you already have the savings since you don’t have to open an account. You also don’t have to be worried about spending your savings out of your savings. You can use the money directly in your bank account.

Credit cards offer many perks. The most common of which is to be able to make purchases online and have the item charged to your account. It also allows you to have cash advances if you use them wisely. Cash advances are very useful if you don’t have enough money in your savings account but you need immediate cash for some reason. For example, if you buy an expensive camera or a new pair of shoes that you don’t have the cash to buy right now, you can just pay for them with the money you have in your bank account and then pay back once you get your purchase.

Credit cards provide convenience to most people. With these cards, you can basically make purchases anywhere that accepts debit card. These cards usually allow you to make purchases up to a certain amount depending on your balance. There are also cards that allow you to build your credit and give you more perks like lower interest rates and longer grace periods before you have to start paying back the credit you have established.

Leave a Reply

Your email address will not be published.