Why do people use credit cards? Advantages of a credit card
Why do people use credit cards? Today we wanted to talk about the advantages of credit cards. A credit card offers you many advantages and is indispensable today and every single time your life. With such a card, you can make cashless purchases worldwide and withdraw at ATMs. Acceptance of credit cards is very large at home and abroad. The providers Master Card and Visa are each represented in more than 200 countries.
At ATMs you can get cash all around the world. They have the advantage of being able to withdraw the amount of money directly in the respective national currency. So you are quickly liquid abroad, too. It is because withdrawing depending on the credit card often even possible for free. Some cards do not incur any cash withdrawal costs throughout the euro area.
Why do people use credit cards? Benefits of credit cards
Benefits of credit cards are unarguable. A major market for credit card payments is also the internet. There, the payments can be processed by credit card quickly, safely and easily. The use of the credit card offers you increased security in contrast to a bank transfer. This is the case as the payments are insured. In case of misuse of your card, which you have not caused yourself, you will be reimbursed by the provider.
If your credit card has a real credit line, you have the advantage of increased freedom of payment. Because if the installment function is activated, you pay back the payroll amount in flexible monthly installments. So you have the opportunity to have a certain amount of money and not have to settle immediately. The installments are collected monthly from your checking account or transferred by it. However, debit interest will be charged in this case.
Why do people use credit cards? Bonus, credit cart statement and installment
It is also advantageous that you benefit from an interest-free period between the purchase and the creation of the credit card statement. During this period, no interest will be charged on a monthly statement.
Many credit cards also have built-in bonus programs. This also allows you to benefit from attractive premiums. These are, for example, discounts or airline miles, which you obtain from the partners of the banks. But also insurance such as a travel cancellation insurance are included in some credit cards. This way, your credit card offers you comprehensive protection even abroad.
In addition, your credit card is insured against theft or misuse of data. Damages caused by misuse of the card are borne by the publisher. You are liable only if you have acted negligently. If you have lost your credit card, it is important to have your credit card blocked in order to avoid misuse. Installment with credit card is also very important for your shoppings. This is the most important advantage of credit card and you should definitely use this feature effectively. There are different kind of credit cards in market according to the their installment advantages.
Why do people use credit cards? Security features of the credit card
Credit cards are equipped with the latest technologies to protect you from misuse. On the front side, for example, there is an EMC chip that has been mandatory in Europe since 2011 and is less easy to duplicate. In addition, there is a safety sign that is visible only in ultraviolet light, as well as a hologram that is very difficult to fake. On the back of the signature strip is attached – here you should sign immediately after receiving the card. The card verification number or CVC2 is printed on the right in the sign. This number is not stored on the chip and thus can not be read out. When shopping online, it usually needs to be provided to prove that the card is actually present to the buyer.
Why do people use credit cards? Handling and fees abroad
In some countries it is not possible to pay with the debit card or to withdraw money. Without a credit card you will not get far here. However, you should be aware that fees may apply to transactions. Most banks offer free of charge payments and withdrawals, at least in other EU countries, but additional costs are incurred for foreign currencies. The foreign currency fee is one to two percent depending on the country. In addition, the bank may charge additional cash withdrawal charges and an additional fee as a percentage of the withdrawal amount. The exact costs can be obtained from your bank. In addition, ask which partner banks your bank has abroad – this usually costs no fees.