A lot of people are not convinced that credit cards are a good financial and payment tool. They think that this is just another way for banks and others to steal the money of hard-working and honest citizens. They are not right, and there are more facts to prove it.
One thing is true, though – every credit card is made to make a profit to those that issue it. It’s only normal for financial businesses to make credit cards to earn from it. They provide a large amount of money, something users don’t have, and charge a fee for their service.
That’s what the entire economy everywhere across the globe is based on. The interest rate you pay each month is nothing more than a charge for the service. If you want to spend their money, you need to pay for the convenience of doing it.
Just like you go to the market and buy a kilo of tomatoes. The vendor might have spent $2 to get them and sell them for $5, but that’s the price to pay if you want to buy in a grocery store around the corner and not travel for hours to get to the field where tomatoes grow. See more about how economy works here.
The kredittkort as some call it is a great way to pay for stuff because it has many features. It’s a win-win option for both the consumers and the card issuers. In this article, we’re sharing five reasons why this is a great payment solution and why you should accept it in your life.
1. It never leaves you broke and without money
The ultimate best thing about credit cards is the fact that with them you always have money in your wallet. Today, you can pay with a card wherever you go. It doesn’t matter if you’re using a debit or a credit one. Everyone accepts plastic just like they accept cash.
However, you don’t need to carry $20,000 in cash in your backpack when you want to buy something expensive. All you need to do is give the vendor your card. That means you will easily pay for something without worrying if you have enough cash with you.
This is great for those who are fond of impulsive buying, but also for those that encounter an emergency. You never know what life brings you and it’s best to be prepared. If you find yourself in a situation in which you need money urgently, then how else are you going to get a large amount without having a kredittkort?
Go to the bank, withdraw the money you need, and work with them. It doesn’t matter if it’s a hospital payment, you can’t miss the chance to buy an expensive painting at an auction, or something else. You’re always backed by it, and you don’t have to worry about not having cash.
2. You get charged with interest only if you don’t return the money in time
As we mentioned at the beginning, a lot of people are refusing to use credit cards because they get charged with interest, and they hate losing money. However, this is a feature that is not necessarily mandatory for those using them.
There is something called paying with a grace period. It means that you never have to be charged additionally if you manage to return the money before the next billing cycle arrives. The amount you borrowed is usually calculated and added interest to it once per month.
If you manage to return the borrowed amount by then, you are not going to be charged with anything. For example, if you put an item on your credit card worth $3,000, and your paycheck arrives 10 days later before the billing day, you’ll cover the difference and the bank won’t charge you with anything.
You still managed to buy what you wanted even though your balance was only $1,500, for example. This is called paying with a grace period and is excellent for those that don’t like paying interest but need a larger amount than what they have at the moment.
3. It provides safety like no other payment system out there
What’s your biggest issue when you’re paying online? Someone stealing the information you provided over the internet, right? A lot of people using debit cards fall for the scams hackers make and lose everything they have.
However, owning a credit card and paying with it is something else. You’ll never lose your funds due to a hacking attack this way because everything you have at your disposal is insured. An insurance company will return your money if someone steals them, so you can pay through the internet without worrying.
4. The ability to withdraw a payment if there’s something wrong
One great feature of a credit card is the chance to withdraw what you paid if you realize that you’re being scammed by a service provider or a vendor. How? Simply by telling the bank that you’re not receiving what you paid for, and it doesn’t matter what the problem is. The bank will shut the payment and open a dispute.
Let’s say that you had contractors to fix your roof, but when the next rain happened, the roof kept leaking. These guys didn’t do what they came for. Instead of waiting for them to find room in their schedule for them, you’re simply not going to pay them for the job.
If they want their money, they’ll come immediately. If not, you’ll call someone else, and they’ll never get their money. This isn’t possible with any other payment option and only with the kredittkort. This is just one of the reasons why we love it and enjoy using it.
5. Getting constant rewards when working and paying with it
For those that have a particular lifestyle, the rewards are coming from using the kredittkort often enough. Depending on your habits and lifestyle, you should get a credit card that offers the rewards you might find the most use of. There are many options to choose from.
Some cards are backed with a cashback option, while others provide points for particular services or products when you pay for these things with your credit card. The more you spend, the more chance to win these rewards are.
There’s no logic to spend more and not use the products just to get the reward, but if you’re doing it anyway, then the rewards are going to come in just handy. Let’s say that you love shopping in a supermarket that has a cash-back option on particular products.
These products will give you up to 6% of the money you spent back on your account. If you buy these products anyway, then why not earn by paying with the credit card that’s made for this occasion? That’s why rewards are great.
These are some of the main reasons to make you opt for a credit card immediately. There’s no reason to avoid getting it, as you can benefit so much from it. As you can see, more features are going your way, and they are far more than the negative sides, so get one today.