Credit Card

Introduction

Credit cards refer to a payment card issued by a bank to the cardholder which allows the latter to make purchases or cash withdrawals up to a certain credit limit. This Credit Limit is the money that the retailer trusts you have. Generally, if you got good credit history your credit limit will be automatically increased when you request higher limits at your bank.

Benefits Of Owning Credit Cards

  1. Convenient

With a credit card, you don’t need to carry your cash and checkbook everywhere you go. All you have to do is just swipe the card at the merchant’s store for payment of purchases or services. It is also more convenient for shopping online.

  1. Guarantee

When making a payment, you can use your card to guarantee your purchase. To do this, you need only sign the receipt after swopping your card at the merchant’s store or other service providers. This will act as a protection in case the items you bought were not delivered or are defective.

  1. Better deals

You can also enjoy certain privileges and benefits when making purchases using your credit card at certain retail stores or service providers. Some of the special offers for credit card users include rebates, discounts, gifts, priority to limited items, and many more. Visit https://www.ocbc.com/personal-banking/cards/credit-card.page to learn more about available deals. Moreover, using credit cards helps you track your expenses and provides a better opportunity to manage your finances.

  1. Reward Programs

Most credit cards come with reward programs. Generally, the more you spend the higher your rebates will be. You can redeem these rebates or rewards at several places such as departmental stores, restaurants, and many other retailers. When choosing a credit card it is important to check if these reward programs are beneficial for you. For example, you can choose a credit card that will accumulate your cash rebate in an account where you can access it once the rebates are accumulated.

  1. Travel Benefits

Credit cards also provide some travel benefits such as insurance and protection of your purchases while traveling. Most credit cardholders can claim compensation or reimbursement for loss or damages to purchases, delays in baggage, and failure in transportation and medical emergency during their journey.

  1. Fraud Protection

When you make payments with a credit card, your purchase is protected against fraud. For example, if you notice that there was some unauthorized transaction in your account, the bank will investigate for you and assist to return your money or provide you with another credit card free of charge.

  1. Financial Relief

If you want to apply for a loan in the future, having a credit card can help you as most financial institutions will look for your credit history before extending the loan.

Conclusion

Credit cards are very useful to have whether you just want to make purchases or pay for services. Compared to cash, credit cards offer many benefits including convenience, protection against fraud, and better deals when purchasing at certain stores.