Credit cards have become a popular method of payment for consumers. Companies have decorated the cards with various scenes, logos, and even with the consumer’s picture. This “plastic money” is popular throughout the world and even with purchases on line.
What are the advantages of using credit cards? The importance of establishing a credit history is one of the foremost advantages. When a large big ticket item is purchased, or a house, the credit score for an individual is crucial. No credit score is given unless a person establishes credit elsewhere. This can be done at a local department store, a gas card, or a bank Visa or Master Card.
Once credit is established, the credit score will be calculated on the basis of re-payment of the debt incurred through the use of the credit card. Credit bureaus, namely Equifax, Experian, and TransUnion, prepare reports based on this information. According to the websites for each of these three companies, a free credit card report is available periodically, so the consumer can check their findings. Any information that is not correct, can be changed with the credit card bureaus.
To entice consumers, credit card companies have instilled reward programs. These programs range from Disney points, insurance discounts, cash back offers, and gift cards. Points are earned for every dollar spent on the card. Some companies give double points for specific purchases.
The advantage of credit card purchases is the guarantee of security offered by the companies. Any unauthorized charges are quickly investigated. Some credit card companies guarantee purchases from breakage or loss. When making on line purchases, the security feature of a credit card outweighs those of a debit card.
In today’s economy, credit cards make payment options more affordable. Time to pay off debt is a feature when the item purchased is in dire need. An electric appliance break down could cause distress for a family, if not replaced. The credit card relieves the stress and enables the family to purchase an appliance with monthly installments.
Credit cards take the place of the merchant, who once offered credit to his customers. The risk for the merchant is non existance, as the repayment of credit is now passed on to the credit card company.
Credit cards are essential when you are in between pay periods. They can be used for grocery and gas purchases, which are essential.
Check interest rates on credit card offers. You can compare credit card benefits, interest rates, fees and other pertinent data by going to the website www.creditcardguide.com. Another site to check for this information is www.creditcards.com.
These sites offer comprehensive information about fees, benefits, and interest rates. There are many credit cards that offer no annual fee, but still offer reward points.