What is a Credit Card and Why Should You Have One?
In a world where everything relies on technology in order to make like as convenient as possible, it’s no longer a secret that some of the things we came to depend on are no longer as important or indispensable. For instance, more and more people are ditching cash in making purchases and paying for services in favor of the credit card.
Well, the reason why you’re reading this article is because you don’t have a credit card but you’re compelled to finally get one. Aside from the fact that you can now pay almost everything using this tool, it also can be connected to your online money accounts like PayPal so that you can make purchases and transactions online without any hassle.
By literal definition, a credit card is made out of a semi-hard plastic material or metallic alloy, although you also can see some of them made of graphite. The card in itself has information that proves the legitimacy of the account holder’s right to use it. The usual details include the account number, name of the owner, or the business name where the card is registered to. In the most literal sense, the credit card is actually just a type of financial account. In the old way of spending, you will pay using cash for products or services you wish to avail, but with credit cards, you’re actually using the bank’s money. The convenience is seen in the fact that you’re able to pay or purchase something without the need of cash and then you just have to pay for what you’ve been spending later on, along with the interest.
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The bank will then be responsible to accumulate your credit card purchases and sends you the bill once every month. As the credit card holder, you’re tasked to pay in full by the due date, although it’s a common practice for banks to allow you to pay in partial with additional fees that look more like penalties.
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Benefits of Having a Credit Card
Many critics of credit card use argue that there is way too much risks involved in owning one, but the fact remains that it still comes with a boatload of benefits. For one, it is way safer and secure to use credit cards compared to debit cards because credit card companies have a very sophisticated system of defending and protecting users from fraud and theft. Another pertinent advantage is when you purchased something using your credit card and later on you met some kind of problem with the store where you purchased it, you can go ahead and go to your credit card company and ask them to reverse the charge. Lastly, credit card companies consistently provide their clients with rewards and low interest promos, which in turn allows you to save while shopping.