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Credit cards have been prevalent to
almost all parts of the globe mainly because of
their many advantages against any other
kinds of loans. There are countless reasons why the mass
prefers to bring home credit cards than specific kinds
of loan or cash loans. Here are some of the preferences
why credit cards have kept their charm to consumers.
First, credit cards are easy to avail. With just filling
out application forms
and minimal documents one can get
approved. In less than a month one can receive his/her
newly approved credit card. There are even companies who
sends out pre-approved cards for prospect clients.
Second, fewer documents are required to submit their
credit card application. However, basic requirements
include valid identification cards, income tax returns,
and certificate of employment for employed individuals.
Financial statements as well as audited reports are
required from applicants who have business or what we
called self-employed. |
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Third, once approved, credit card users can
always apply for an increase in credit limit if the
credit limit provided by the issuing company is not
substantial for their needs. Fourth, credit card user
will benefit from easy payment as he/she can choose to
pay only the minimum payment required. However, the
unpaid balance will incur charges, like finance charges,
etc. On the good side, late charges will not be incurred
because payment has been made before the due date.
Fifth the use of it the credit card facility for the
purpose of purchase of goods or items doesn’t incur
charges. Unlike other loans, like personal loans, car
loans, housing loans and cash loans that already have
interest by availing the loan, credit card’s use does
not impost such interest, provided that the credit card
user pays on time.
Sixth credit card’s use gives flexibility to the user as
it can be used for different purposes, unlike any other
loans that have specific purposes.
Seventh, credit card’s unsettled amount can be converted
to installment payments to unload the burden of paying
in lump sum.
Eight, credit cards’ limit can even be converted to cash
with interest that ranges from 3%-4% per transaction.
Nine, credit card users can also extend credit to anyone
whom they chose to, as supplementary cardholders.
Supplementary cardholders can enjoy same benefit as with
the principal holders, with less payment on annual fees.
Tenth, credit cards serve as payment centers for utility
bills. There are many credit card issuers who offer one
billing-one-statement for all other bills as all other
bills will be transferred to the credit card.
Eleventh credit cards accumulate points that can be
exchanged for exciting rewards! Every point equals an
amount purchase depending on the type of credit card.
While accumulated points can be exchanged for items that
have equal point value as that of the credit card user.
Finally the last one, credit cards provide referral
points and rewards to existing cardholders who can refer
their friends and or relatives to avail new credit
cards. There are still other advantages of credit cards
versus any other loans, but those above stated are some
of the seemingly gainful for consumers. |
