What Is The Point Of Credit Cards? – Credit cards are considered one of the best inventions of our society. They have multiple benefits that we will discuss later on. What do you would happen if credit cards vanish instantly?

What is the point of having credit cards?

The question is quite simple and straightforward. We have to gather all advantages and describe them. The good news is that there are a lot of activates of credit cards. First of all, let us, despite the uses of credit cards. The answers to these questions are given below.

An alternate for money:

Money is used by buying different stuff from the market. But what will happen if you have to buy a lot of things from the market. The person will have to take a lot of money with himself to buy all of that stuff. Now, most of the time, it is not easy to carry around a lot of money. Allow me to explain using an example so that people may fully understand the whole concept.

If a person goes to buy a car, he will have to pay a considerable amount for it. For instance, the dealership is an area that is far away from his residence. It means that the person will have to travel all that distance to pay for the car. Cars are expensive, and money used for buying the vehicles will not fit in the pocket. Unless, of course, the person is buying a wrecked car that does not run anymore. The person will have to

carry money by hand or place it in a bag to take it to the dealership and buy the car.

The person will have to carry around the money in the bag unless he finds a suitable car at a convenient car dealership. It means that a load of cash would move around many dealerships unless the perfect vehicle is located. Most might argue that the person may look for the car first and then return home and bring the cash bag to pay for the car.

It is not a good idea unless the person who owns the dealership is your best friend. You might select a car and tell them not to sell it out. But they will do it anyways. Many customers check vehicles in showrooms. Sometimes a customer may provide the dealership with a much better price and buy the car. As a result, the person who wanted to buy the car in the first place will have to find another vehicle. All this happened due to one reason, and the reason is the difficulty of carrying a bag full of cash. There are a few other problems related to it. First of all, it is very tiring to carry around a bag full of money. Plus, there are security problems. Any person can come by and snatch your money.

Due to these reasons, they developed credit cards. Credit cards nullify all the problems stated above.  The first point why credit cards exist is because they are an alternative for money. Imagine just carrying a single piece of the card rather than tones of money. There is both a security risk and people do not find it easy to carry around such cash.

Furthermore, it wastes a lot of time to count money. For instance, if a person takes a cash bag to buy a car, it would take hours for the manager to count all the money and then approve the payment. It would be better than a person carries around a credit card and pay the money. Furthermore, there also other benefits related to credit cards, and I will talk about them later on.

One other benefit is that there is always a piece of evidence when money is paid. If there were no credit cards, there would be no concept of digital bills. Digital bills are much more reliable than handmade bills. Allow me to explain using an example so that people may fully understand the whole concept.  When an employee of a company goes to buy material for the company, he will have two options to pay.

The first option is to pay using a credit card, and the second option is to pay using cash. If the person uses the money to deliver the material, the shopkeeper will provide him with a handwritten bill. If the material goes missing, the shopkeeper will blame the employee for the losses. Moreover, the employee may put theft charges on the employee. If the payment were made using a credit card, who would have resolved the matter quickly. When a credit card is used to make a payment, the company receives a message about the price. If the bill was handwritten, the employer could blame the employee for making the wrong bill. As a result, this is another reason why credit cards are essential.

Credit cards are much secure:

Yes, it is true. Credit cards are much more secure than carrying around cash. There are many lifetime examples of why people should carry around credit cards more often. Allow me to explain using a model to have a better idea about the whole concept. Suppose a person goes to the store to buy furniture for their new home. If the person has to pay by cash, he will have to take tons of money to pay for the table.

Moreover, there are very high chances that they may snatch all the money and run away. Moreover, if the money is the more significant amount, it is easily identifiable by the thieves. They may come and steal the money.

Once the money is lost, who can not recover it?  Furthermore, if the bills are paid using the credit card they are more secure as all the record is kept safe with the bank and the person who buys the product. Furthermore, if the person has a credit card, he will have all the transaction history.

Credit cards are much secure than money, and there are more reasons for this statement. The other reason is that there can be fraud in paper money. Allow me to explain using an example to have a clear idea. For instance, and a person goes to sell his car. The opposing party decides to pay for the vehicle using cash.

Now people are not experts in identifying money, so there are high chances that the person’s money is fake. What do you think will happen if the money is in a very high amount? Who will lose all of the capital? Moreover, the bank will also not take the money. Furthermore, you won’t file a lawsuit against the person because if he were a scammer, you would have the wrong details. Again,  most people may argue that if a credit card is lost, a random person can access all the money in the account.

Keep in mind that losing money and losing a credit card is different when a person loses 1 million dollars of cash, who can not recover it quickly. There are a few ways that can recover it that involve the police and the intelligence agencies. However, if the same person loses a credit card, the scenario changes totally. Most might argue that if the person loses the credit card, he will easily access all the million dollars.

The people who made the credit card, so simple, also made multiple procedures to make it secure. There are various stages that a person has to go through to access a credit card. First of all, if the credit card is stolen, the person will have to figure out the pin code to enter the person’s bank account. It is pretty challenging to figure out the four-pin code. And if the thief starts guessing the pin, it will take years to get the pin code finally. 

The second security feature is to block the credit card. It is always best to call the helpline of the bank account and stop the credit card. Once the credit card is blocked, it would be considered a piece of plastic for the thief.  Who would no longer use the card? Furthermore, there are other ways to determine the location of the credit card. If who used the credit card at any outlet, the location of the place can be determined. Moreover, some people say that the live area of a credit card may also be located. However, that is not possible because the credit card chip does not have energy, and hence who can not track it.

Furthermore, we can relate the credit card with the debit card. The credit card also has better security than the debit cards. Most might argue that a credit card is the same as a credit card, but that isn’t true. First of all, there are heavy differences in terms of security. A credit card is much more secure than a debit card. If a debit card is stolen, the person only has to guess the PIN, and there will be three security stages for a credit card. If the incorrect code has been entering, the card will be automatically blocked.

Credit cards provide multiple benefits to people:

Several credit cards provide a lot of benefits to people. Have you ever heard about the word cashback? Cashback is money return to the people in the form of a reward. Cashback is an award to people when they use credit cards for carrying out purchases.  In simple words, the credit card company will reward people for spending money. If more money is finishing, the rewards will be more in number.

Furthermore, credit cards will also provide a lot of discounts. Most credit card companies have contracts with other outlets. These outlets allow credit card companies to offer benefits if they use them to shop from those outlets. These are basic business strategies that promote growth for the credit card companies as well as those outlets.

Moreover, if people use credit cards to buy airplane tickets, they people would receive bonus points. Who may convert these bonus points to cash or flhyi9ng hours? Sometimes if the airline ticket is too expensive, the credit card companies will provide many bonus points. Moreover, sometimes the bonus points are so much that they cover the cost of half of the journey. These are calling to fly hours.

Furthermore, if credit cards are using to purchase fuel, they have rewarded with money for power.

There are different categories of credit cards. The elite class has another type of credit card, and ordinary people do not use them. These credit cards are expensive to maintain as they have very high annual fees. For instance, the American express centurial credit card has a yearly fee of 5000 dollars. The Jp morgan chase palladium card has a yearly fee of 595 dollars. These credit cards have a very high yearly price, but they provide significant benefits. For instance, the American express credit card offers access to luxury hotels at a discount.

The chase results in visa card offer packages such as giving 80,000 bonus points if they spend 4000 dollars in the first three months. Bonus points are critical because if a person has more bonus points, he will avail more discounts and packages. Moreover, these credit cards provide emergency payments. For instance, a person may not have money in his account or pocket, so credit cards are helpful.  You might be able to pay for the fuel as the bank will temporarily pay the amount.  The person will have to pay the bank at the end of the month.

Disadvantages of using credit cards:

Everything in the world is not perfect, so credit cards also have a lot of disadvantages. Transactions can occur online using credit cards. The internet is not a safe place as there are plenty of hackers on the internet. This hacker is always waiting for a chance to take that money.  Moreover, these hackers know a lot of techniques to make money from different accounts.

One of the methods is called phishing. In phishing, a scam email is sent from the bank to the person—the email consist of a series of questions asking for signing information. The information may include the date of birth, some security questions, the account number, and the security pin. If the person does not identify the email as a scam, send all details to the hacker. The hacker can then easily retrieve as much money as he wants.

Credit cards trap people into paying more money than required. Allow me to explain this using an example, so most people have a clear idea of the whole concept. If a person does not have money to pay his house’s rent, he will use the credit card to pay for the rent. The credit cards act as emergency money.

Moreover, when the month is over, the credit card company will send a bill to the person. If the person still does not have money to pay for the bills, the company will transfer the payments. However, this has a condition. The person will have to pay interest on that money. Sometimes when the money is a lot, the claim can become very high. It benefits the credit card company but puts the person at a loss.

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