Credit Card TipsWritten by John Mussi
Here are some useful credit card tips for you to consider before applying for a credit card. Before applying for a credit card, you should decide why you want one, and make sure you can use it wisely. More and more people use plastic as their main means of paying for goods and services. Today our entire financial system relies on credit. Credit cards can help to make your life that little bit easier- you can use it to pay for goods or services, either over phone, online or over counter. A credit card makes it easy to buy something now and pay for it later. It's much safer to use a credit card than to carry around cash. If you lose your credit card, you can ask your credit card company to cancel your card, and no one else can use it. But if you lose cash, your money is lost. Credit cards are also convenient. You can use them to make hotel, car rental and other reservations. You can buy items over phone or online. You can also use credit cards for emergencies, like unexpected car repairs, when you don't have cash to cover expenses.
| | Credit Card Benefits and DrawbacksWritten by John Mussi
Credit cards have both benefits and drawbacks. It is wise to consider both before applying for a credit card. While they can be very useful, credit cards can also be risky. Even people who are usually good with their money get into trouble with credit cards. A credit card can be useful, but may also end up putting you in a difficult financial situation if misused. Here are some of benefits of credit cards: Withdraw cash 24 hours a day, anywhere in world. Buy online. It is quickest and easiest way, and you are protected against credit card fraud. Repay in regular instalments. Typically, these incur interest. Usually, there is an interest-free repayment period, which you can use to repay your debt in full, interest-free. One of main benefits of using a credit card rather than a debit card is protection provided by Consumer Credit Act. This says that if you have problems with goods or services you can get your money back from card issuer if you can't get it back from supplier. Some cards provide purchase protection insurance, which pays out if something you have bought with card is lost, damaged, or stolen within ninety days of date of purchase. A credit card can cost nothing - if you pick a card that doesn't charge an annual fee and you always pay bill in full every month. A credit card can save you money if you choose one that earns you cash every time you buy something. How much cash you get back is calculated as a small percentage of amount you have spent on card. Some cards offer incentives other than cash - Air Miles or shopping vouchers, for instance. Even if you do not pay your monthly bill in full, a credit card can be cheaper than running an overdraft on your current account, especially if your bank charges a monthly fee as well as interest when you overdraw. Using a credit card can work out cheaper than using traveller's cheques or foreign currency to pay for things abroad. This is because exchange rate used by card companies to convert foreign spending into sterling is better than normal tourist rates. However, because of credit card charges for cash withdrawals, a debit card is better if you want to use plastic to buy currency, whether over counter or from a foreign cash-machine.
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