Credit

by Akua Hinds

Created on: September 19, 2011

Cash is important to have on hand and it will usually always be accepted.  However, there are times when cash is an unsafe and undesirable choice when making purchases.  People who book travel plans would be much better off using credit cards to secure their bookings because if an airline unexpectedly goes out of business, the money charged to the credit card for the air fare will be reimbursed back on to the credit card because a credit card has a purchase protection program.  If you were to purchase an airline ticket using cash and the airline went out of business, there is no guarantee that the cash will be refunded back to you.  Credit cards provide more protection to consumers and the credit card statements help consumers keep track of their purchases. 

Depending upon the line of work you are in, owning a credit is an absolute necessity.  Many home-based business owners, especially those who are involved in network marketing companies, need to use credit cards to order products and supplies for their customers.  Many network marketing companies require that the independent business owners place orders on the company’s website, and Internet orders are nearly impossible to do without the use of a credit card.  Using a credit card guarantees that you will have proof of a purchase taking place.  Many websites include safety features for orders made with a credit card such as requiring that the card security code located on the back of or on the front of the card be entered on the website before the purchase can be finalized.  Credit card purchases made on the Internet will have also have a confirmation number linked to the purchase and an email will be sent confirming the purchase as well. 

Carrying around mass amounts of cash can be risky because if your wallet were lost or stolen, there is no retrieving back your hard earned cash.  However, if your credit card is lost or stolen, as long as you contact the credit card company as soon as possible to cancel your card and request a new one, you should not be held responsible for any unauthorized charges made to your account.  In addition to the many safety and convenience benefits of using credit cards, many credit card companies reward customers with travel points and loyalty points for using the card.  Loyalty and travel points add up and can result in even more amazing benefits including free airplane tickets, car rentals, hotel room bookings, movie tickets, discounts on purchases and many more benefits depending upon the card type.  Paying cash doesn’t usually offer any additional rewards, and it is more sensible to use a credit card for purchases and use cash towards paying the credit card. 

Use your credit card wisely and keep all of your receipts until your statement arrives in the mail and you can verify that the purchase amounts are accurate.  Some people believe that credit cards are dangerous and lead to out-of-control spending and high interest rates.  However, credit cards are perfectly safe to use as long as the cardholder is responsible and is consistent with paying back the amount owed on the credit card.  As long as the card is paid off in full each month, no interest should accumulate on the card.  Credit cards are wonderful and safe tools to build up your credit, secure your purchases, and earn reward points at the same time. 

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