Credit cards have become somewhat of a necessity for the business owners nowadays. Its use has grown tremendously over the past few years and yet people are still not aware of the many perks associated with having a credit card. The aim of this article is to discuss some of these points with the hope that people can better understand their finances and best to utilize the facilities that they have at hand.
Altering your Billing Cycle
It is quite possible that you control when you have to pay back the money that you owe to the credit card company. If a person is regularly paying off all the bills on time, then he/she will save themselves from a lot of hassle regarding interests, penalties and what not. The best way to use your card is to have an efficient pay back schedule planned.
But this isn’t the point of interest here. The important thing here is to know when making a charge. For example, if a person makes a charge one day prior to the closing of the statement, then he/she will have the normal time duration of 25-30 days to pay off the dues. If, however, that person waits a little and makes a charge one day after the closing of the statement than this duration will be increased. Up to 55 days can be expected during which you will be required to pay back to the credit card company. Having such kind of flexibility is really important and should always choose a provider that allows you to do so.
This is because there may be times when you are not able to produce the due amount in a short span of time and would require some extension to get your affairs in order.
What to do if your application gets rejected?
People are often disheartened when their application for a credit card is rejected. The important thing is to remain positive and optimistic. Submit an application to ask for reconsideration. There are also humans on the other end and they are bound to make mistakes. It is highly likely that they might have overlooked some information or misunderstood. If you feel that this is the case then call the concerned person and try to convince them. Sell them your strong points and why it would be a good idea for you to have a credit card. If your case is sound, then that person might reconsider their decision and accept your application.
How can you use chargebacks to your advantage?
What many people do not understand is that chargeback is a fantastic tool to have at your disposal and you should not be afraid to wield this power whenever necessary. Whenever there is a dispute with a merchant, people often find it extremely difficult to get back their money. However, as a credit card owner there is an option that you can parse that will improve your chances.
If the merchant does not budge from his stance even after all your convincing then you should ask for the contact information of a supervisor. And what you need to tell the supervisor is that you are going to ask the credit card provider for a chargeback. Most of the times, the supervisors will change their minds and allow you to have your money refunded. This is because chargeback will incur a lot of additional fees such as higher merchant fees and so the supervisor would be looking to avoid that as much as he/she can.
Before we conclude this article, it is important that you remain aware of the reward cards. Most of these offers are offered in order to make you spend more so that their credit card providers can earn more. But then you might find yourself in a bit of financial trouble, so it is imperative that you use your credit cards for things that you are most likely to use in the future rather than pile up bills on things that you did not need, just for the sake of qualifying for a particular bonus.
The benefits of paying by credit card.
These days you can pay by credit card almost anywhere in the world and the benefits of this are very clear. Although there are two that are above any other. The comfort and security that this means of payment brings you.
Comfort because you do not have to carry cash always on top or calculate before leaving home what you are going to spend or what you are going to buy.
Security because if your wallet is stolen and you do not carry cash, just credit card; The cost of theft will be minimal thanks to the fraud protection insurance offered by credit card companies.
Credit cards have risks, of course. The main one of them is the indebtedness that is reflected in a high interest and the associated commissions. However like any tool, managing it carefully, the benefits outweigh the risks.
We imagine that we have not yet convinced you.
So here you have 5 additional benefits that you can pay by credit card instead of cash:
1. Extra benefits on your purchases.
When you use cash to pay for food, gas, or anything else you are not getting any reward for those purchases.
On the contrary with a good credit card you can earn 3% of what you have spent on your purchase, have discounts on gasoline or get other types of advantages.
If you spend with the card 800 euros per month and you earn 3% of what you have spent, that is 24 euros per month. That is, 288 euros a year of extra money that you would not have had to pay with cash.
2. Your personal finances better managed.
Paying with a credit card instead of cash allows you to take better control of your expenses. When you buy something, an extract is automatically created with the purchase and saved to your account.
The banks keep these records and you can consult them whenever you want. That way you’ll always know how much money you spent, what you spent it on, and when you spent it.
All this without work on your part. Without having to be pointing in a notebook or an Excel or any other software your expenses.
Also do not forget that if you pay by credit card your purchases to be registered as movements in your accounts you can then study them in detail in the free tool offered by Dinaru.
3. Free loan always available.
If you pay your full balance each month, that is, you do not make purchases through payment deferred, you still have that money from the date of purchase until the date of payment of the card.
This is at least 20 days when you have this money available for any emergency or unforeseen expense, at no cost to you.
This short-term loan can free you and pass it to your savings account and earn a few extra euros.
Sure, then do not forget to have enough money when the card payment date arrives so you do not incur debts and have to pay the interest rate on the card.
4. Safer purchases with added advantages.
Most credit cards have a protection policy for purchases made with the credit card. Here are some examples:
American Express will pay you for repair or replacement of the item you purchased within 90 days of purchase. Or you will be refunded the money loaded on the card. Ideal for purchases of technological products or expensive items.
Mastercard adds a very interesting service. If you buy with your Mastercard an item and you find another equal but cheaper during the 60 days after the purchase, Mastercard reimburses you the difference. Visa also has similar protection programs.