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Call
me an extremist. A few issues ago I wrote to you with 10
Reasons You Should Hate Your Credit Card Bank. In this issue
I will point out the other side. Boy, the banks are going to love me
for this; too bad they won't be sending me a check!
Love 'em, hate 'em, it's the same old
story. Credit cards themselves are not bad. There are advantages and
disadvantages. This time I want to take a look at some of those
advantages...
By the way, please take the survey
when you're finished--thanks!
1.
Access to money
By being able to use your credit card you can actually save
money! Here's an example from my personal life. My dentist gives a
5% discount if you pay at the time of service. Because I can pay
with my credit card I get the 5%. Even if I paid interest on this
amount, at 10% APR I can still take 6 months to pay it back and
break even!
2.
Protection from merchants
When you buy stuff with your credit card you are very
protected. For example, if a merchant won't give you a refund for a
return you can always contact your credit card bank and dispute the
charge. The bank will
probably decide in your favor and chargeback
the merchant. The merchant would have to take you to court to fight
further. On the other hand, if you paid cash instead of using your credit you would
have to pursue the matter in court with the merchant.
3.
A chance to build a positive credit history.
You must have a good credit history in today's society. Many people
look at your credit report to judge you so it's vital that your
report is the best it can be! Potential employers, insurance
companies, mortgage companies, and many more will try to get an idea
of your character from looking at this information. Having a credit
card and using it wisely will help create that positive history.
4.
Other perks and cash back rewards
There are many cards that actually pay you to use them. They provide
a cash-back bonus or other reward. If you can take advantage of that
reward then you can actually save money.
5.
Warranty protection
Some credit cards will extend the warranty of an item purchased with
that card. Contact your credit card companies to learn about these
benefits so you know which card to use when purchasing that new computer.
6.
Money in an emergency
If your car breaks down late at night you may not be able to get an ATM machine or your personal bank. However, by having a credit
card you'll have access to the money you'll need in these
tense situations.
7.
Better deals than other loans
So many banks, so few good customers. They are fighting
for our business! You may be able to get better rates from your
credit card bank than from a personal loan or auto loan. Right now I
have four, count 'em, four banks that are offering me 0% until near
the end of this year!
8.
No chance of losing cash
 If you lose your wallet you've lost your cash. If you
have $100 in there, it's gone. If you carry little cash and use
credit, then, if you ever lose it you can call the credit card bank and report the card
lost and you won't owe a dime. The bank loses the money, not you, HA
HA!
9.
Better than a debit card
If someone steals your debit card information they may be
able to steal money from your accounts. If that happens, your
checks will bounce and you'll have to deal with each place you wrote
a check too plus the bouncing fees from your bank. You'll have to
fight to get your money back. If someone steals your credit card then
you would call the credit card bank and tell them cancel the account
and you wouldn't be responsible for the charges that you didn't make.
That's the risk banks take for the profit they make. Hey, that
rhymes.
10.
Customer service 24/7
Most credit card banks have reps there 24/7. That's great
because you can deal with them at your convenience. If you pay your
bill late Thursday night, and you have a question, you can
talk to someone. Granted that you'll be dealing with their voice
menu for a while before you speak to a human, but you will eventually
speak to one. :-)
Click here to see the other side of
the story in:
10
Reasons to Hate Your Credit Card Bank
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