Why Are Credit Cards The Easiest Tools To Shop With
In today’s times needs are many but the means to fulfil them are few at times. For instance, it is not possible to satisfy all wants with a fixed monthly income whether from salary or business. Further, there is opportunity cost for either not being able to exploit a brief window of chance or investment sanctity. Hence, brief bursts of liquidity help tide over these moments. This is provided by credit cards.
Ease of Use:
Credit Cards are also considered to be one of the easiest tools for making purchases of different kinds. This tool, also called plastic money allows one to buy and take home the product right away. However, the payment needs to be made in small instalments over a period of time. The same does mean an additional interest pay out. However, the same is acceptable considering the fact that one gets to buy a high priced item requiring an unavailable lump sum.
Reduces Capital Erosion:
Credit cards enable an individual to make such purchases which might mean liquidation of high return investments. If a credit card is available, it means paying off the purchase without bearing the opportunity cost. Further, the pay off happens over a period without a serious dent at one go.
There are many cards which offer zero annual charges for specific amount of purchases made within a specific period. Hence, these cards offer benefits to those who are shopaholics. Further, these cards offer amazing cash back options for various purchases. They could be something as simple as booking a cab, doing a recharge of satellite television or phone. These cards also offer points for each rupee of purchase. These points accumulate over time. These have an expiry period and can be used up for more purchases. They can be used for getting discounts on future purchases as well.
It is often believed that debit cards are a direct link to one’s personal wealth. Credit cards do not involve immediate loss in money in case of fraud. If one is stolen, transactions can be blocked and declined. However, debit cards offer less security in the same scenario since the cash is released from the account of the individual immediately. These cards also help in resolving currency issue when travelling abroad as most of them are accepted worldwide. They are many cards which have tie ups with particular popular restaurants and other merchandise chains for discounts in the form of direct cost reduction or cash backs. The same holds true and results in savings during holidays, with respect to hotels and restaurants.