Choosing An Everyday Credit Card And Benefits

Why Choose Credit Cards for Everyday use - How to Choose every day credit cards and advantage over cash transactions

Using a credit card for everyday use to pay household expenses and other bills can be very beneficial in many ways. Just about every person makes payment almost every day in one way or the other by means of cash, cheques and debit cards. The benefits of using a credit card for every day expenses and what to look for in an everyday credit card are outlined below in details.

Benefits of using an everyday credit card

Organised proof of purchase -

The only record you have for a payment made in cash is the receipt you get from the merchant. Sometimes

it is a very time consuming job to store all the receipts especially when that shoe box you use gets filled up to the brim and no folder seems big enough to keep the proof of purchases. This persoalan is simply solved for majority of the purchases as the credit card statement has a detailed list of all the payments that come out of your card. Most merchants including clothes retailers accept credit card statements as a proof of purchase and are happy to exchange/refund on purchases within their specified period. 

Choosing a credit card over a debit card (Bank Card) –

A credit card offers increased security for online purchases. There is little protection available on debit cards because the money is taken out of your current bank account balance immediately and it is sometimes very difficult to have the transaction reversed if the merchant makes a runner with the money. However, with a credit card purchase that is made online, you can simply ring up your everyday credit card provider and complain about the merchant you made the payment to and they will put the payment on hold immediately. As a result, you will not be expected to make the payment to the credit card company for that particular transaction until the issue is resolved!

Choosing an everyday credit card over a Cheques -

A bank cheque bears the hassle of carrying the cheque book in person all the time and cheques may take up to 5 days to clear. Some merchants require immediate payments through cleared funds and cheques may not be the right form of payment for many. A credit card warrants the buyers credential to the merchant and the merchant is assured that the fund has been made available by the credit card company through immediate authorisation.

Choosing everyday credit card over cash –

As for cash transactions, the receipt you are handed by the seller can be the only proof of purchase. If the product you purchased does not meet your needs and you wish to return it but the seller plays difficult, there is no protection available to involve a third party to resolve the dispute except for writing a complaint to the trading standards and authorities. However, if you make a payment with a credit card and you have the receipts too, you can open a dispute with the credit card company and benefit from a third party involvement to oversee the disagreement.

What to look for in an everyday credit card

There are some very important aspects you need to look at before choosing a credit card for everyday use as you are likely to use it very often and spend a reasonable amount of money every month with it.

Low APR (Annual Percentage Rate) –

APR is the annual percentage rate of interest that is applicable to the outstanding balance on a credit card. This means lower the rate the better. Look for the lowest APR credit card so that if you start developing an outstanding balance occasionally, then you will not be hit with a large interest charge.

Transaction charges –

In rare cases, some credit card companies may charge per transaction on domestic purchases and most charge for international transactions. Therefore, it is always a good idea to confirm that there are no fees involved per transaction.

Higher Credit Limit –

This is the maximum amount one can spend on a credit card or in other words, the maximum credit that is available to the credit card holder to make purchases with. The amount varies between lenders and a higher limit offers more flexibility to the credit card holder. However, higher credit limit can be very tempting and lead to unnecessary purchases, therefore, it is advisable to assess how much credit limit you need on your everyday use credit card and apply accordingly.

Credit cards with Rewards and Air miles –

Some credit cards offer points on the amount spent and this can be very handy as points can accumulate very quickly. The way to look at it is quite simple, the money you spend on every day expenses are unavoidable anyway, therefore, by spending the money with a credit card with rewards schemes can save you money in the long term with free perks such as free air tickets, hotel rooms, coupons, vouchers etc.

Is the card well recognised –

Major credit cards such as Visa, MasterCard or Amex are very reputable and are recognised worldwide and accepted by majority of the merchants who accept card payments. Therefore, it is always a good idea to check the type of card you are applying for and if it is accepted everywhere.

And last but not least, it is very important to apply for an everyday credit card from a reputable provider such as a bank or a financial service provider that can be relied on. A credit card payment is as secure as the card providers own security measures that are in place. Check to see if the card provides payment protection for clients in cases of merchant defaults, fraud protection and what identity protection measures are in place. A credit card company with a good record of customer support (preferably 24hr helpline) can come very handy. Especially when you will be using your everyday credit card frequently, you are more likely to need customer service assistance more often

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