Published on December 31st, 2019 | by Sugata Sanyal


Change The Way You Shop With Convenient Saving Credit Cards

In the last few decades, there has been a significant increase in the popularity of credit cards. People use this plastic money to buy whatever they need from the market. These could be a variety of items from simple groceries to consumer products like television sets. In such cases, they don’t pay for what they acquire immediately. They can do so at a later stage. The individuals need to ensure they have adequate funds to repay what they owe. In the process, they get an opportunity to improve on their credit score. Some of them even earn attractive reward points on purchases they make.

What do people need to know about saving credit cards?

People who are thinking about applying for a savings credit card need to remember an important fact. This mode of payment is nothing but a convenient short-term loan which they have to repay. They should read the terms and conditions in the documents relating to this plastic money. They need to aware of the interest charges, penalties, and late fees they likely to incur. Only then should they take any decision on whether to opt for it or not. Fortunately, such charges only arise when they don’t pay their dues on time. This is a situation which they want to avoid at all costs.

Financial experts say this form of plastic money has a maximum limit. People owning credit cards can’t make purchases beyond this ceiling. These professionals refer to it as a ‘credit line.’ Financial institutions offering such facilities set this boundary for all their customers. In doing so, an official of these organizations take into account certain important factors. The most important being these individuals’ present income, earning capacity and credit history. After making any purchase, they receive notifications on the amount they can spend later on. This helps them keep track of what they buy.

Is it necessary to acquire a savings credit card?

These specialists state the credit cards can change the way people shop for what they need. They just got to be responsible about their spending habits. Only then they’ll discover the convenience of using this plastic money. However, the professionals do point out the following 6 important benefits of using credit cards:

1. A safe and effective mode of payment for online shoppers

Credit cards are certainly a boon for online shoppers. They can buy whatever they want from the comforts of their home without any hassle. Almost all of these individuals use this plastic money to pay for what they buy.Generally, financial institutions offer this facility provide ample layers of security on cards they issue. The officials of these establishments do this for a particular reason. Their primary concern is the prevention of potential frauds arising from such transactions. After all, the last thing they want is for their customers to lose their money.This is not all. The retailers of such sites are even willing to offer attractive discounts owners of such cards. It should give many people the incentive to acquire their first savings credit card.

2. No need to carry banknotes and coins all the time

Most people are reluctantly to carry too much cash with them wherever they go. They prefer to keep in their wallets the exact amount they need. These individuals have valid reasons for taking such a step. There is also the risk of theft and pickpocketing. It almost impossible to recover the money they lose in such events. However, this is not the case, with savings credit cards. In such, this plastic money gets stolen for any reason; they cancancel it. On top of this, most societies around the world become cashless over time. No wonder youngsters in such places rely on this mode of payment.

3. Applicable to all currencies around the world

Credit cards work on almost all currencies in circulation around the world. This is certainly a godsend blessing for those who need to go overseas.People traveling to foreign countries can use this plastic money to make all their purchases. It saves them from the headache of changing all their banknotes and coins. For this, they only need to nominal charge for the respective money conversion. Debit cards don’t have this facility.This is a fact which most individuals can’t afford to overlook.

4. Emergencies payments

Most people can’t predict with certainty when a crisis is likely to arise in their lives. It can come at any time without warning. They may have to admit sick relative to the hospital without delay or make immediate payment. In such circumstances, there is no guarantee; they’ll adequate cash on them. Fortunately, if these individuals are savings credit cardholders, they use their plastic money in such instances. They can make all the necessary payments without any inconvenience. This can go a long way in giving the peace of mind they crave for.

5. Interest-free period

Most financial institutions offering savingscredit card facilities provide their customers with interest-free days. During this period, these individuals can purchase whatever they want without incurring any interest charges. This is to encourage them to use plastic money more often. However, the officials of this establishment do advise them to do so prudently. It ensures that they won’t end up losing a lot of money.

6. Standing instructions

People owning popular credit cards have the option to give standing instructions to their financiers. This may be necessary when they have to make important utility bill payments. In such cases, the service providers clear such dues on behalf of their clients when they arise. For this, they charge nominal fees from such individuals.

Savings credit cards can change the way people shop for what they need. Moreover, they pay for such products or services at a later date. These individuals need to look at the above 6 important benefits of this plastic money. It won’t take them very long to realize the truth of this statement. However, they need to exercise adequate self-control over their spending habits. This ensures they won’t incur unnecessary debts.

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About the Author

I have been with the Technoacademic Community for 45+ years. Joined the Tata Institute of Fundamental Research (1973-2012): retired as a Professor, joined the Tata Consultancy Services (2012-2015) as a Research Advisor. I am a Visiting Professor at the IIT, Guwahati, India at present.

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