Online Calculator | Practical Uses Of Your Credit Card

Practical Uses Of Your Credit Card

Credit cards have many practical applications, apart from using them as light switch covers and golf putters. It is better to use a credit card rather than your debit card when shopping online, buying big-ticket items, booking travel, paying for fuel and hotel accommodation, and much more.

When shopping online, it is much safer to use a credit card and not your debit card. Your debit card information may get stolen as it linked to a checking account. Many credit card companies feature optional policies helping to reduce the liability to zero.

Using a credit card is safer when you buy big-ticket items such as furniture and household appliances. Credit cards come with dispute rights in case something goes wrong with the purchase or merchandise. Another beneficial feature is the extended warranty which extends the merchant’s warranty. If you are to rent a car or buy electronics, some credit card issuers feature property insurance for these types of purchases. It is important to avoid carrying a balance if you buy big-ticket items. On the positive side, some credit cards come with additional benefits such as lost luggage assistance, common carrier travel accident insurance, legal assistance, auto rental collision damage waver, and much more. Card holders can also ask for emergency card replacement and make emergency cash transfers. In addition, credit cards also go with identity protection and balance protection as well as purchase assurance, typically over a period of 90 days from the purchase date.

Using a credit rather than debit card is recommended if you are a new customer. For example, if you buy an item now, and it takes a couple of days or weeks before it is delivered, credit cards offer better protection. If the item is defective or does not arrive, you can use your dispute rights. It should be noted that protection is extended over a specified period. Problems should be solved as soon as possible.

Auto and gas credit cards are recommended for use if you are booking a travel. When using a debit card, the hotel chain or travel agency will debit it immediately.

Using your debit card to make recurring payments is not recommended because it is difficult to keep track of the payments. If you don’t have cash in your checking account, you may incur considerable late payment fees. It is better to use a low-interest credit card for recurring payments, especially if you carry a balance.

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