Credit cards struggle to establish themselves as a payment tool for a series of false myths. In particular, the main concern is data security, combined with the fear of fraud or cloning (even in the digital environment); the fear of losing control of their expenses; excessive costs related to card management.
In the event of theft or loss of the card, you can request immediate blocking by calling the bank numbers available 24 hours. The cardholder will be reimbursed for any charge subsequent to the block. In the case of cloning, on the other hand, it is sufficient to challenge the unlawful charges for the reimbursement. To prevent such cases, you can take advantage of the SMS alert service, which sends a message on the phone number indicated each time the card is used
Monitoring expenses
With credit cards is also possible to monitor all expenses in an easy and immediate way, especially if you use an internet banking platform. In addition to the SMS alert option, electronic cardholders receive, in fact, a monthly or annual statement, in which each movement is reported. In some cases, it is also possible to obtain a personalized statistic of what has been spent, month by month, in goods related to leisure time, travel, clothing, and food as to better plan the subsequent exits.
Low or no cost cards
As far as costs are concerned, it has no reason to worry. There are, in fact, numerous products at no cost, available in the market such as prepaid cards which provide for a minimum commission for recharging operations. It is also important to remember that the use of the card for the payment of goods and services does not in itself provide additional costs, except sometimes for payment at petrol stations.
Ease of access
Credit cards also offer many advantages, such as postponed charges (ideal if you do not have sufficient liquidity to support a specific purchase) and the possibility of use in any country without currency exchange problems, thanks to the international MasterCard and visa circuits.
Insurance coverage
Other advantages are related to insurance coverage (for travel or goods purchased online) and charges for money spent. With a credit card, you can top up your mobile phone, pay bills for the main users and renew the car insurance stamp. Many cards especially those resulting from a partnership between the issuing institution and other companies, the so-called co-brands offer the possibility to share points with loyalty programs to obtain discounts or win prizes.
Benefits of credit cards in a glimpse
A credit card offers more suitable options for payments. We can forget about cash. Just with the card, we can pay everywhere. No worries to withdraw a sufficient amount and without fear of having to circulate with a large sum.
– Internet payments easier and more secure. Credit cards are insured against fraud or non-delivery of your purchases. In the event of an accident, you cancel the payment and everything is settled by the issuer of your card.
– In case of need of an urgent purchase, credit cards will bring you the money to pay without having it to your bank account. You can after repay when you dispose of it.
– If you set your credit card account at the end of each month, there is no interest payable.
Few disadvantages of credit cards
- Be careful about your expenses. Sometimes if you borrow a lot of money, it is expensive to pay back. In this case, it’s better to try a personal loan, with a more favorable interest rate than credit cards.
- Credit cards often charge annual fees for their use. If you do not use your card frequently, perhaps an ordinary credit card is enough for you.
- Cash withdrawals are not recommended with your credit card. Additional costs are applied. In this case, prefer to use your credit card.
- In any case, there is still the risk of theft. Be careful, keep your PIN code secret and immediately call the stop number of your provider in case of loss.
Conclusion
The credit card has become a universal means of payment and plays a major role in our daily lives. However, it is not uncommon to hear voices against these credit cards because, according to many, a credit card encourages consumption, indebtedness, refunds with interest and other hidden charges, etc. To choose the right credit card, you have to understand the mechanism of it. As a savvy consumer, you need to understand what a credit card is, what are its advantages and disadvantages. Once you understand this, you just need to define your needs and make comparisons using simulators that will readily help you find the best credit card offers.
