Credit cards have many practical applications, apart from using them as light switch covers and golf putters. It is better to use a credit card rather than your debit card when shopping online, buying big-ticket items, booking travel, paying for fuel and hotel accommodation, and much more.
It is safer to charge items to a credit card when shopping online. Your debit card information may get stolen as it linked to a checking account. Many credit card companies feature optional policies helping to reduce the liability to zero.
When purchasing big-ticket items, such as household appliances and furniture, it is safer to use a credit card. Credit cards come with dispute rights in case something goes wrong with the purchase or merchandise. Extended warranty is another beneficial feature as it extends the warranty offered by the merchant. If you are to rent a car or buy electronics, some credit card issuers feature property insurance for these types of purchases. Carrying a balance should be avoided when buying big-ticket items. On the positive side, some credit cards come with additional benefits such as lost luggage assistance, common carrier travel accident insurance, legal assistance, auto rental collision damage waver, and much more. Card holders can also ask for emergency card replacement and make emergency cash transfers. In addition, credit cards also go with identity protection and balance protection as well as purchase assurance, typically over a period of 90 days from the purchase date.
If you are a new customer, it is better to use a credit card and not a debit one. For example, if you buy an item now, and it takes a couple of days or weeks before it is delivered, credit cards offer better protection. If the item is defective or does not arrive, you can use your dispute rights. It should be noted that protection is extended over a specified period. Problems should be solved as soon as possible.
When it comes to travel, it is more practical to use a credit card, especially if you plan to go on a holiday a couple of months from now. With a debit card, the travel agency or hotel chain will debit your check card immediately.
Using your debit card to make recurring payments is not recommended because it is difficult to keep track of the payments. You will face late payment fees if you don’t have enough money in your account. It is better to use a low interest credit card for recurring payments, especially by borrowers who carry a balance.
Hesitating which auto & gas credit cards solution to choose? Visit this guide to make informed decision.
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