Why should you use credit card for shopping?
Initially almost all bills were paid using cash inclusive of shopping however that ceases to be the situation today. Unlike in the past where credit cards were only reserved for major transactions, they are frequently used today. There are lots of benefits of using credit card for making your payments especially online as you will later learn from the text. You will first have to choose the best place to get credit card from and then invest in security measures to keep your card and its details safe from hackers. You should buy CVV from a trusted shop online that you can use for your credit card protection when shopping via the internet. These are some of the ways through which credit cards use for transactions can be beneficial to you.
Helps you build credit
Having good credit is one of the ways one can live a fulfilling financial life and management today. Your credit score relies on your ability to pay your debts on time, ensuring constant small time purchases and clearing of bills when needed. Good credit score will help you get a good home when looking to rent or purchase one. It can also be one of the factors considered by lenders before you get any kind of loans and lastly cell provider, utility companies and insurance firms will use your credit score and history for determining your eligibility.
Earn rewards from use
Did you know that use of credit cards for your small and big payments can make you eligible for certain rewards? All credit card companies will give such bonuses and rewards to encourage you to use the credit card for your ventures. Rather than relying on cash for transactions you can enjoy the 1.5% cash back for every dollar that you spend. This is however possible when you have a flat-rate card for your purchases. Once you know the different kind of benefits your card accrues you can use it for better rewards and cost efficiency in shopping. You must however be very cautious with spending without a plan just because you want the rewards, this could sum up as financial mismanagement.
They are safer to carry
Insecurity is certainly a threat that we have to prepare against every day. Violent criminals can target you if you have substantial amount of cash on you and even harm you should you resist surrendering to them. You stand a better chance of securing your money when you have a credit card rather than actual cash. Upon theft actual cash can be gone without any trace of recovery whereas credit cards can be cancelled immediately they are misplaced or stolen.
Allows for easier tracking of expenses
Cash expenses were initially the only ideal way of spending in the past and that made it hard to track your expenses throughout the day especially when you have lost your receipts. You need to track your expenses for better budgeting and financial management in the future. Credit card allows for real time update to your expenses for every bill cleared using it. This means you can always log in online to track your expenses and make better financial decision in the future.
Instances when you should avoid using credit cards
As much as there are benefits to using credit cards for your simple and large transactions, it is not always ideal to go with the option in certain special circumstances. Remember to be especially careful with who you share your credit card information with or where you use it online as part of the security measures to keep its derails anonymous. Combined below are a few instances when you are advised to not use your credit card for making payments.
Payment of extra fee
There are many shops that will add the processing fee of any transaction to the shopper’s bill which is never ideal especially when one is trying to be economical. This according to them is the cost of doing business and shoppers can only be saved from such if the rewards on their card sallow the surcharge to be ironed out. If this is the case with the merchants you shop from, why not go for use of debit cards or use of cash for payments alternatively.
Overspending is always a risk when you have more money on your credit card than you need. There are many shopping addicts who are unable to stop once they start purchasing things they love online. You should avoid using your credit card for payment if you have trouble keeping track of your expenses. In such cases shoppers are advised to go for cash payments or alternatively use their debit cards for making payment for purchases. This ultimately reduces your need for overspending seeing your limited cash options during shopping.
When you are avoiding merchant service fee
Most merchants actually prefer debit rather than credit cards when it comes to making of payment. There are small businesses that you shop from near you that encourage shoppers to avoid using credit cards for small payments. This is only necessary because the processing fee charged for such transactions turn up to be completely unnecessary. Remember the processing fee for debit cards when compared to credit cards is low hence manageable for shoppers.
Credit cards are very common today and are accepted by almost all businesses online and land based. It is up to you to tread carefully in whom you shop from and how you keep yourself safe when shopping. Start by finding an authentic CVV shop where you can purchase the three digit code from for your card before starting to make online payments using your card. Since the internet has scammers and phishers, you also have to be selective when it comes to the websites that you shop from or make payments to.