Undoubtedly, the key advantage of a credit card is ease of use: there is always money on the card, which can be used to pay for goods and services anywhere and at any time.
The grace period on the card is the second important advantage. Grace or interest-free period is the period during which interest is not accrued on borrowed funds.
It works for about 50 days, but sometimes longer. This means that by paying for the purchase with a credit card, within the period specified in the contract, you will be able to return to the Bank as much money as you spent. Not a penny more.
It is important to remember that when withdrawing cash, the grace period does not work.
In addition, the advantage in the form of grace period to its borrowers provide not all financial institutions. That is why it is important to read the agreement carefully during the credit card processing. It is possible that the client will have to return the borrowed funds to the Bank with interest from the first day of its use.
The low risk of your money being stolen should also be attributed to the benefits of a credit card. If the cash from the purse can easily steal, then withdraw money from the card to the robbers will be much more difficult. It will take a long time to pick up the pin code or hack the Bank system, which is not the strength of every fraudster. Although, and such, too, happens.
To protect yourself from unauthorized withdrawal of money from the card, it is important to remember a few simple rules:
- It is not necessary to write down the pin code of the card on paper and store it next to the credit card.
When entering the pin code during cash withdrawal at the ATM or when paying for goods in the store, it is better to close the terminal buttons with your hand.
- In no case can you pass the card into the hands of third parties (even relatives), and, moreover, do not tell them the password.
Always try to keep the CVV2, CVC2 or CID codes (the last three digits on the back of the card) secret. Knowing them, the fraudster can easily make any payment online without your knowledge.
Among other advantages, we should mention a variety of loyalty programs of banks, in which, paying for purchases with a card, you get back part of their value or offers a variety of bonuses.
This also includes the system of savings on credit cards. As in the case of deposits on debit cards. That is, if the card has its own funds, they are charged a certain percentage. Unfortunately, such programs are not provided by all banks and not for all products.