Credit Cards
Credit cards are a convinient way to manage your purchases, enabling you to purchase goods and services on the spot and paying one consolidated bill at a later date. They make their money by charging very high interest rates on balances carried forward. The key therefore is to use the credit cards for their convinience, the "free money" being lended by the financial institutions, and in many cases for the rewards offered by the companies (dividends, air miles, etc). Credit Card companies like American Express, Visa, Discover and Mastercard are well known around the world and are issued by credit card companies, banks, financial institutions and large corporations.
Value Added Credit Card Perks
When you pay off your credit card bills at the end of every month, there are no credit card fees or interest charges. This means
a credit card can be transformed from being a burden to a very rewarding financial partner. Not only can the credit give you access
to short term loan, it can have many other benefits when compared to other forms of payment.
Loyalty and Rewards Programs - Most credit card companies offer loyalty programs to reward customers who use
their credit cards. Rewards could include airline miles, cash backs, mortgage dollars, merchant credits at grocery stores, gas, etc.
Purchase Protection - Many credit card companies will automatically insure your purchases against damage for a certain
amount of time.
Warranty Protection - Extended warranties on items purchased with credit cards can help alleviate the risk of failure
and provide the option for exchange.
Travel Protection / Insurance - Several credit cards offer cheap insurance, travel protection and concierge services.
