All that you want to know about credit cards

By Jamie Hill - 23 July 2019

Opinion and Features

If you do not hold a credit card at the moment, then there could be different reasons for it. One of the most common reason could be that you never felt need for it; you prefer cash payment and you never thought of changing or altering the mode.

But we just want to let you know that you need not to be a Superman or a Wonder Woman to use a credit card! Millions of people use it and they do it for practical reasons. You are probably not aware of the benefits of using credit cards over cash and once you come to know about the same, you are surely going to think about having one or more CC for yourself! In this article, we are going to provide you some basic and interesting information about credit cards.

An introduction to the world of credit cards  

If you need to pay for a product or service and don’t have the immediate cash for it, a credit card is a great way to spread the cost of the thing that you wish to purchase, as well as giving you a way to buy the product or service now, and then pay for it at a later date. Holding a credit card can be a safe way to spend money because if your credit card is ever stolen or lost it is easy to cancel through your bank and if anyone uses it illegally, you can usually make a chargeback on payments so that you don’t have to pay the bill of illegal activity.

 A credit card is one of the best ways of creating good credit history for you.  Whenever you make a payment on your credit card, your credit score will increase and you will become more eligible for loans, other credit cards and mortgages, and when your credit score improves, you can usually take advantage of lower interest rates on borrowing too.

You can use your credit card to make purchases without having to carry around physical money with you.  This can be a safer option, as you will not lose any cash if you do happen to lose your wallet or have it stolen.  A credit card is really useless to someone else unless they have all of your other details, or your PIN number.

 As well as using your credit card in any of your local stores, you can even use it to make payments for mail order items, orders made over the phone, for example fast food deliveries or online payment sites.  It is usually a better idea to use a credit card online because if you do end up paying for an item that is not shipped out to you or is faulty when you purchase it, you have protection and can make a chargeback.  You will not be able to do this with a bankcard.

 You can use your credit card statement to keep track of the purchases that you have made over the month.  If you feel that you are spending too much each month, you can review your spending and see what you can cut down on to save yourself money. In addition to these benefits, there are many credit cards that offer cash back on some purchases, low interest rates and even reward schemes where you can earn points towards a free gift, or win prizes.

 Applying/getting a credit card online

 For the ability to pay for goods or services when you don’t have the immediate cash to do so, you should apply for a credit card.  You will be able to pay at a later date when you have the money, and you can even pay in installments to spread the cost of the item over a period of time. You can apply for a credit card in a number of different ways, but it is becoming a convenient and fast option to apply and get approved for a credit card online.

The first thing that you should do if you wish to apply for a credit card online is to know what it is that you want.  There are some credit cards that offer 0% interest rates and 0% interest on balance transfers too.  This allows you to buy items and then pay back the cost without having to pay interest.  You will not be able to use the 0% rate forever, so it is important that when you are looking online for this kind of credit card that you are aware of the term that the 0% interest rate applies to.  You should also find out the rate of interest that you will be charged when the 0% rate is over.  Other credit cards include those for people who have bad credit or not credit.  You can’t be instantly approved for these kinds of credit card, but they are available.  You should be careful, as often the interest rates are very high so you should ensure that you would be able to afford the repayment costs.

 Once you have decided on the type of credit card that you would require, you should use a credit card comparison web site to compare the best deals.  Sometimes, you are offered special deals when you sign up including free gifts and even some kind of insurance policy.  You should be careful that you are not sold a credit card based on a freebie because you also need to check that the actual card is right for you.  There is no point in getting a freebie that you may not even need if you are going to be paying extortionate rates of interest that you can barely afford.

 You should fill out the application forms online carefully and follow all the guidelines that you are given.  Once you have applied, you will have to wait to be approved, and the bank will send you a form that you need to physically sign and return before you can actually receive your credit card.

Registered in England & Wales. No: 4513027, Positive Media Group, Old Bank House, 5 Devizes Road, Old Town, Swindon, SN1 4BJ