Advantages of Credit Card
Advantages of Credit Card What is a credit card? A credit card is more than a simple piece of plastic, it is first and foremost a flexible payment tool accepted at 30 million locations worldwide, and if the card balance is paid off every month, then no interest is charged on purchases made so, essentially, short-term credit is granted without the consumer paying any interest. Credit cards are a popular form of payment for in-person and online purchases. People use them every day without thinking very much about their specific benefits. Credit cards offer a wide range of advantages to consumers, allowing them to shop without carrying cash and to buy expensive items. They offer protection from certain problems and may even let users rack up rewards. Credit cards can be defined as a payment card issued to a person for purchasing goods and services and obtaining cash against a line of credit established by a bank or a financial institution. There are different types of credit cards like standard credit cards, promotional and reward programs, bad credit and/or credit repair and specialty credit cards. Progress in civilisation in its turn has brought out radical changes in the manner of trading. The need for something intrinsically useful and easily applicable in everyday dealing is clearly felt. Cash in the form of currency notes and coins makes up just one form of the payment system. Development in banking while also giving inputs to the further development of cash brought about a second phase in payment namely paper instructions such as cheques and credit transfers. The requirement for greater flexibility and convenience has led to electronic payments, and this is where plastic cards have proved their worth. It allows the card issuers to limit the sum of money the card-holders wish to spend. The spending of card-holders who have defaulted on payments or who are over their credit limit can be restricted until the balances are cleared. Credit was