Many people nowadays have bank cards and also many of them have credit cards. These cards’ convenience is obvious as they give a possibility to purchase goods and services even when there is not enough money on a current account. However, it is also possible that credit funds are dangerous as it is sometimes difficult to control oneself when having such great possibilities.
It is obvious that credit card is a very easy and comfortable option to use money when there is nothing on the personal account. With the help of such type of plastic, it is possible to pay in the supermarket or in the hotel. It is also necessary to mention that it is useful for the online payments and purchases. On the other hand, personal funds on the debit cards can be used just in a similar way. So, there is a difference of some kind.
Actual Perks and Pitfalls
One of the most evident benefits of the credit card is the grace period. During this period the person can clear a debt without charge for interest. At the same time, there is also a negative side as in case of non-payment of a debt during the grace period, the client will need to make large interest payments. Different banks have various conditions of credit repayment and it is extremely important to pay an increased attention to them.
Another benefit of the credit card is that the owner can use the possibility of the credit limit not only once but as many times as it would be necessary. As soon as the debt is cleared, one can use the loan proceeds again, which is extremely convenient in many life situations. Everyone was in such situation at least once when money is needed extremely, but the personal account is empty.
It is also necessary to mention that the credit can be used by one’s own free choice: to pay for any goods and services, withdraw cash, and so on. At the same time, many banks have different profitable reward programs for those, who uses such plastics. They may include various discounts, bonuses, or even gifts for an active use of the credit card. It is evident that such offers could be even more profitable than the simple use of the personal funds.
Credit cards have numerous benefits but it is also necessary to remember that there are some disadvantages. Among them is the fact that the rates of interest on the credit cards could be higher than of the loan to a private individual. Moreover, the use of such type of plastic could be charged with an additional service fee. The similar fee could be applied to the cash withdraw. In that way, it is extremely important to learn about all the conditions of the credit card use and be attentive to the available funds.