Credit cards have its advantages & disadvantages associated to it ! Credit cards can either be an asset or a burden depending on how you use them.
Any Purchases You Can Pay Off – Unlike in ancient days where you have to have the money to buy items you want to buy. Credit card is a saver for most people now a days. As they can buy anything they want using a credit card! While the settlement period is later days. Normally credit card companies gives a credit period of 52 days.
Air Tickets – There is a very huge benefit when you purchase Air tickets using credit cards as most of them offer a free travel insurance. Otherwise you have to spend a fair amount of money buying a travel insurance separately when Air ticket is purchased using cash. Also credit card cover refunds for cancelled flights, emergency services, covering baggage loss, accidental death coverage, concierge services, money back incentives, or hotel and rental car discounts. Some credit cards have affiliation with the Airline company where they offer air mileage’s when those cards are used to purchase. American Express card has instalment plan which it offers so your Air ticket price can be spread and paid over time. 3 months, 6 months, 12 months or 24 months instalment. The best part is mostly it is 0% Instalment schemes.
Big Ticket Items – It is advisable to buy the big ticket items in instalment than you pay a bulk amount at once. Check out with your credit card company on the Instalments plan they offer. Current Value of the money is more than in Future. When you spread your instalment over a longer period of time you eventually you end up paying less amount than of the current day !
Internet Shopping – Currently more and more people enjoy online shopping than physical shopping. Credit cards are safer than using a debit card or PayPal. As PayPal account and debit card are linked to your bank account, it may lead someone steal your information. credit cards have protection against online theft.
Purchases which Requires Security Deposits – There are some instances require a security deposit when you schedule an appointment or plan to rent an item. E.g Hotel Bookings. Most hotels require and security deposit when you check in. In these instance Credit cards are best to be used for these types of purchases.
International Purchases – Based on your card, you might be exempt from paying certain foreign purchase fees on international transactions. You can also benefit from Exchange rates and more on the commission paid for Travellers check. Credit card is a easy to carry money than hard currency of the Foreign country. Some cards also offer Discounts in Foreign countries, so you can enjoy those offers also! Most credit cards cover foreign purchases to protect you from fraud or damage while traveling.
Book Now, Pickup Later – Most of the companies offer you the ability to purchase something immediately and pick it up or have it delivered at a later date. Sometimes things don’t go according to plan and you have to delay the pick up or delivery date. A credit card will offer you protection or disputation rights.
Breakable Items – Do you have an experience buying a fragile item only to accidentally break it when you got home? It’s an awful feeling, In most cases, the item’s warranty won’t cover accidental damage, so you lose out. But major credit cards cover this type of damage, reimbursing the price or replacing the item.
Service Providers – When you want to pay for a contractor , it’s better to use a credit card instead of paying by check, cash, or debit card . Like other ittems on this list, paying by credit card offers your protection if you’re ultimately unhappy with the provided service. In case you want to dispute an issue with the merchant, your credit card company will allow you to do so. Credit card gives you a added protection against these issues.