Credit cards are an inevitable reality in modern financial world. Many factors
prompt people to acquire credit cards . The five most popular reasons are listed
in this article, not necessarily in that order.
1. No need to carry cash. The plastic does it all.
Imagine carrying a 10000 bucks in your pocket. The anxiety, insecurity and
simply the bulk will keep on nagging you. People like to avoid this feeling and
a credit card helps them achieve this.
2. Rewards, rewards and more
Cashback, travel, airmiles, stay in hotel, special stores discounts, you name
the rewardt and the credit card companies have it. Coupled with a great
customer service program, this becomes a big factor luring people to take credit
3. Convenient online shopping and purchase protection
Secure online transactions have created a boom in online spending. Credit
cards are the most favored means to pay and buy things online. The 128 bit
security offered by secured sites have made people believe that online
transactions are the safest. Add to this the chargeback, and payment protection
things even get better. Other people apply for a credit card for the reason that the products they purchase will have protection from the credit card company. This usually is the case when something has happened with the item you have paid through the credit card and the credit card company will pay for the loss by reimbursing the amount.
4. To help with money in emergency situations
Credit cards can be used to withdraw cash from ATM machines, which are
available at numerous locations. Though, it is not advisable to withdraw cash
using credit cards because there are heavy fees and transaction charges to pay
but, people do so because the demands of the situation are too overwhelming.
5.Establish a credit history
They way you use credit cards and repay your balances are recorded by banks
and reported to credit bureaus. This builds the credit history. People
with good understanding of finances use their credit card wisely and build up a
solid credit history. On the contrary those who use credit cards recklessly will
somehow find themselves penalized in their credit reports.
There can be other reasons why people take credit cards, but the above
mentioned factors are most favored by people to take credit cards