Advantages of Credit Cards and the Apple Factor

The only constant is change.

If we closeted ourselves from the world we would be safe… probably; we would never learn or experience anything either.

Man would never have progressed without venturing into new areas. Each invention, each discovery, each convenience brought with it positives and negatives; even nuclear power.

Any thing when used judiciously and in the right hands can bring great benefits; in others it can cause great harm.

Credit cards are no exception. The advantages of credit cards versus their disadvantages, is a hotly contested topic.

This article will discuss the advantages of credit cards and how in the right hands they can only make life easier and better.

Convenience

The biggest advantage of using credit cards is the convenience that comes along with them. You no longer need to carry cash and all your wallet needs to carry is a small bit of plastic and loads of photos of your loved ones.

Short Term Interest Free Loans

When you purchase something with a credit card you are given a grace period within which you have to pay the money back. This grace period can extend from 21 to 56 days depending on the card and the terms. This effectively means that you have your need fulfilled now, and you fulfill your financial obligation later. Now isn’t that a stellar advantage of a credit card.

Rewards

Credit cards come loaded with offers. You get instant discounts at places. You get cash back on usage. You collect brownie points that can be redeemed for goodies. You get free air miles. This gives you the little extras in life without having to work for them. If you use your card wisely these rewards come through your daily purchases and if you pay back within the grace period you pay no interest and at the same time accumulate goodies. Citi Bank also gives points if you go in for paper-less statements. Going green never felt this good. Aren’t these great advantages of using credit cards?

Emergencies – No Sweat

It is the unexpected that catches us floundering. Credit cards come very handy when faced with an emergency and there is no ATM that is within reach. They also allow us to take cash advances in case we are short of funds and it’s late at night and no other help is accessible. This is one credit card advantage that lets you can breathe easy knowing that you are prepared for any emergency.

Online purchases

Prepaid virtual credit cards have made online shopping an incredibly convenient and safe experience. Advantage means having your loved one cozying up with you and the both of you making home purchases together. Online purchases free up time that can be used for happy moments with your family. Fostering bonds albeit indirectly is what makes your credit card your biggest asset and friend. Advantages cannot get better than this, after all family time is priceless.

Keeping the doctor at bay

Healthy finance options means less stress. Less stress means better wellness. Peace of mind is a better preventive than any fruit or any toy.

Help-line in strange places

When traveling abroad, credit cards are an incredible help. You can purchase travelers’ checks with them if needed. When using them for purchases you get very good exchange rates.

Budgeting

If used wisely, credit cards help you to budget your expenses. Your monthly statement gives you an idea where your money is going. If you used cash, you would need to keep records on your own and this is time consuming and cumbersome.

Joining the Dots

The credit card statement serves as an organized record of your expenses which makes accounting a breeze.

Scoring Advantages

Credit cards are invaluable when it comes to building credit. Your FICO score gets a real boost if you use your cards wisely. This can only mean better deals and better interest rates.

Safer Purchasing

If you purchase something that is to be delivered to you by mail and the condition of the product is not satisfactory or if it is not as per the advertisement, you can dispute the purchase and the credit card company will not clear the dues till you get the correct product. Isn’t this safer than waiting for cash refunds, or product replacements. With this safety feature dubious products and companies do not find it easy going.

Educating children
Credit cards are a great way to teach young adults financial responsibility. They learn how the credit system works. It is possible to put in a stop limit to the amount that can be charged to a card, if you speak to the issuing company. This kind of card when given to a teenager helps them learn the concept of budgeting.

Theft Cover

If you find yourself in a hold up situation, and you are forced to part with your card, you need not panic. Inform the issuer immediately and they will cancel the card. Your responsibility in this situation will not be more than $ 50.
Imagine the same scenario if you were carrying a large wad of cash. There would be no way you would get your money back.

Finding your way

If you move home, a credit card is great help in providing cover during the time required to establish small credit and goodwill in the community.

Bridge finance

Business credit cards are exceptionally helpful in providing bridge financing to small businesses, where expenses are incurred on a daily basis, but the income comes in a little later.

Employee cards

Credit cards eliminate the need for petty cash that you have to dole out to employees and help you keep track of the expenses that they incur. You can put a limit to the amount they can charge, so there is really no worry of mischief.

Gift cards

Virtual prepaid credit cards make great gifts. Let the honeymoon couple decide what they want for themselves.

Disadvantages

Though the article is on the advantages, I would be leading you up the garden path if I only spoke of the advantages. One of the major disadvantages with credit cards is that they can cause a debt cycle that can become difficult to come out of. Also they can tend to make you want to succumb to tempting offers even though you may not have the financial capacity to take a bite. However, both these can be can be tackled and prevented with discipline, responsibility, and common sense.

You decide whether the apple brings benefits or troubles. Newton used his experience to explain gravity. What will you do?

Click here to find out how to save money on credit cards

Compare and save on credit cards, cell phone, long distance, Internet access, mortgages, insurance, and more at www.dontspendmore.com

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