If you are looking for a few useful features in your credit card, what should follow after a well planned research is a complete credit card comparison. By the time you are done with these processes, you will have a reliable financial instrument in front of you. Following is a list of a few features and benefits that the leading credit card companies today are offering to its customers
Insurance Benefit
A number of leading credit card companies in the market come with a few consumer protection programs in place already. Card holders or potential card owners don't even realize that features such as rental car insurance or travel insurance is already in their kitty once they apply for a particular credit card. They also get product warranties that typically exceed the manufacturer's warranty on a number of brands. Now isn't this a useful feature to look out for while making a credit card comparison?
Universal Acceptance Of Your Credit Card
During your normal course of life, you will find that making a certain purchase with a debit card is difficult. Whenever you are looking to rent a car or maybe stay in a hotel room, using a credit card will ensure that you have an easier time paying for such services. Also, such service providers including rental car companies and hotels prefer credit cards over any other financial instrument because they give them the freedom to charge their customers any extra amount in case there is any damage to the room or vehicle. It is important to prepay for your car rental for hotel stay if you want the merchant to have enough information about the final amount of your transaction. Another very valid reason for using your credit card, especially if you are travelling in a foreign country is that the bank or financial institution may insist on holding several hundred dollars on your account if you choose to use a debit card. Also, several merchants do not accept debit cards if you are on a foreign land despite the fact that they may have a popular bank logo on them.
Building Credit - How This Aspect Is Always Important
Building credit on your credit card should always be easy. If you do not have a credit card or if you are trying to improve your credit score, it is always advised to use the financial instrument responsibility. Credit card companies report all your payment activities to the credit bureaus. Remember, debit card use is not going to appear anywhere on your credit report. This means that using cash or debit card is not going to improve your credit score in anyway.
Is There A Situation When You Are Advised Against Using Your Credit Card?
It is always advised to pay with your credit cards but in some situations it is always better to pay with cash or any other means. Credit cards work because retailers honor these transactions and make it easy for you to shop with them. Several merchants have to pay a significant portion of their everyday sale to credit card companies. This is the transaction fee that the latter charges the former. This implies that a cash sale would mean more to the retailer than an equivalent credit sale. In such a situation you can easily get discounts from the merchant as well. For example, if you have purchased a big furniture set or maybe an LED panel for your living room, the difference in the amount that you pay could be substantial. However, remember that you will be foregoing any previously mentioned consumer protection offered by the leading credit card companies.
Following are a few more reasons when using your credit card is not going to be such a good idea:
- If you are not able to pay your credit card balance on time and in full, it is better never to use your credit card unless you are absolutely ready to bear the additional interest charges
- If you know that you have a habit of spending more than you can afford, paying with your credit card is never advised
Exceeding your credit limit is not appreciated in any form, therefore, if you have a hard time staying within your credit limit, it is suggested not to use your credit card
So, the bottom line is that whether it is a regular credit card or any other credit cards for bad credit, use it wisely. Whether it offers you any useful features and benefits or not, being diligent with your purchases is always going to help you in the long run.
