Credit card: The easiest and convenient shopping option, when handled properly it has many unknown benefits and thus saves from becoming a detriment. If one is able to pay monthly bills on time and does not carry forward a balance, then secured credit card is a blessing in disguise. The cards can also land you in deep debt if not used properly and this generally happens when you are unaware of the terms and conditions. When using a credit card person generally tend to think the credit card is extra cash- truth is, it is not additional cash. Apply for fewer credit cards, so it is easy to keep track of them and manage payments.
A secured credit card is very safe as it needs you to deposit a certain amount of money into the bank account and in turn get credit for the same amount. The credit card company then holds on money in your account if you do not make payments. If the credit card company feels you are making timely payments, after observing the credit history for a year it might then offer you an unsecured credit card.
Secured Credit Card Advantages:
I consider the following advantages when I use the credit card:
- I can shop anywhere, even overseas.
- It boosts my purchasing power, I can now purchase goods online and also over the phone.
- Some cards offer me a Cashback as an additional incentive for using the card.
- I can build my credit history.
- I can now maintain a trail of my expenses and therefore helps me cover my financial activities.
- Whenever I receive a billing mistake or faulty merchandise, the credit card allows me the right to challenge.
- I am also given an option of withholding payments.
- I am given an option of monthly instalments when I make a purchase. My credit card points can also get me an additional discount on airline tickets.
- My Credit card serves as an emergency backup when I have an unexpected or emergency health care or other costs.
- Carrying a credit card for me is also safer than carrying a lot of cash.
- I also get rebates, points or extra frequent flier miles.
- Another important advantage that I see in my secured credit card is that if I lose the card, I am supposed to report it to the company immediately and I have to hardly pay anything if the card is misused. It is a good idea to always keep the account number, phone number and other information on the card, so that you have the information handy in case the card is stolen or lost.
It is easy to avoid credit card snags and maximise the advantages by keeping a track and closely reviewing the monthly credit card statements and settling the monthly bills as soon as possible, this enables one to plan for the next month and avoid overspending. With this, it is important that one makes purchases with reliable companies to ward off any credit card fraud. In the case of stolen cards, report the same to the company immediately to save it from being misused.