Advantages of Using Credit Cards

Advantages of Using Credit Cards

One of the major revelations in the financial industry has been that of credit card. Ever since their conception, they have come up as a major financial tool. As it is, they have caught the imagination of the average guy on the streets in a big way and today a large number of people are making use of these cards. As a matter of fact, according to a recent study, it was revealed that the average Australian carries as many as four to four cards in his wallet.

A credit card is a thin sheet of plastic, which allows a user to make purchases on credit. With the use of credit card a user can buy products as well as services and uses of a credit card to make payment. The merchant then submits the sales slips to the finance company or bank and receives his/her payment. The company in turn receives the payment from the user on a later date.

So, what is it that makes them so popular? The answer perhaps lies in the number of advantages, that these thin sheets of plastic bestow their user with. The following are a few notable advantages of using a credit card:

One of the foremost advantages of using a credit card is that it allows you to make purchases without ready availability of cash at any place. The credit card is therefore, a convenient way of making payment. So, in case your salary has been delayed, or you do not have ready cash in your hand, then in that case, you can always make use of this card for making necessary purchases. You can then pay for them at a later date.

Another major advantage of this card is that it allows you to purchase items, which you may not otherwise afford to pay for. So, if a particular product has caught your fancy, but is beyond the reach of your budget, then in that case, you can readily make payments, and pay for them later on. This way, you will not be pinched as well.

These days, credit cards can also be used for withdrawing cash as well. So, in case, the particular store where you have gone for making purchases does not accept credit cards, then in that you can use the card for withdrawing money from a nearby ATM and make payment. However, such a transaction is also accompanied with a higher rate of interest as well.

Apart from that, most credit cards do not charge any interest for a particular period, such as 15 to 50 days. If you pay back during this period, then no extra amount would be charged. Also, if you are not in a position to pay the entire credit card bill, then in that case, you can pay for a minimum amount and pay for the rest at a later date.

The above factors have been quite instrumental in the popularity of credit cards.