What Are The Uses Of Credit Cards?
Credit cards are methods of payment conducted by electronic data enabled cards. Credit cards work by allowing the anticipated cardholders to clear payments on goods or services according to the set agreement with the seller, and the buyer, who in this case is the credit card holder.
Credit cards can be subject to investigations when misused, or when infringement of security has been brought into question. However, credit cards are issued with the safety of the credit card holder’s personal information into the picture. These days it is quite hard to steal a credit card that doesn’t belong to you and make payment from it as security on the same has been enhanced.
Credit cards verses charge cards
It should be noted that credit cards and charge cards are two different forms of payment systems, although the two undertake similar responsibilities towards clearing payments. However, when it comes to a charge card, the card holder has the responsibility to ensure that full payment of balances has been undertaken every month and thus there are no arrears on the card, but when it comes to credit cards, a certain percentage must be paid in full according to the agreement set by the card holder and the issuer. Credit cards also make the card holder to be a victim of increased interest rates when the balance is not paid in full at the end of each month.
Top UK Credit Cards
- Barclaycard Platinum with Balance Transfer
- Halifax 37 Month Balance Transfer
- Tesco Clubcard Credit Card with Balance Transfer
- Aqua Classic
- Capital One Classic Platinum Mastercard
- Santander 123
- Tesco Clubcard for Purchases
- Amex Platinum Cashback Everyday
- Ocean Credit Card
- Vanquis Visa
Credit cards verses cash cards
Cash cards can easily be used to replace the need for currency and thus if what the holder needs to do is to get some solid money and use it for other purposes, then the cash card would better apply than a credit card that only applies when goods or services have been purchased. Credit cards do not allow you to access cash and hence if there was a need to lend someone money, a credit card may not come to your aid.
How do credit cards work?
Credit unions or banks have a responsibility of issuing credit cards to anticipating credit card holders. Credit cards allow people to make purchases and pay for services, and the amount is charged on the card. Later in the month, the credit card holder will have a responsibility of clearing those arrears on the credit card. If you are unable to clear your balances in full for several months thus leading to accumulation of high interests, you can be associated with people who may have bad credits. However, if you can clear payments in full every month, then you can be associated with people who may be said to have excellent credits.
Electronic verification is primary when using credit cards. Notice that the customer must have enough funds in accordance to the report presented on the account of using this technique to verify the capacity of the holder to clear payment of goods and services in full.
When using credit cards, the merchant also has to verify that the anticipated card is in possession of the actual holder and thus not in violation.