Why credit card is the most preferred payment mode? - Other Questions

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Why credit card is the most preferred payment mode?

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Credit Cards today are by far the most extensively used payment method in the world.  Credit card, a small plastic card issued to users as a way of  payment, means a lot when it replaces a huge number of dollar bills enabling cash free travel. Depending on the usage limit provided by the issuing bank or institution, its value at times may range from a single dollar to thousands of dollar bills. Just imagine stopping at a fast food restaurant, buying a $5 lunch, then being told you can’t use plastic to pay for it.  It may cause goose bumps to someone who hasn’t experienced such a situation and if you don’t have backup, you might have to go hungry as well. Thus, it has become a necessity not only for the business classes, but today, it’s a privilege for the common man as well.

Power of Purchase is one of the primary benefits of using a credit card; which means, remote purchase of a service or products whether online or through swipe anytime, anywhere with the feasibility of payments in future and without liquid cash. Not only does it enable you to pay at a later date but it also provides you with an alternative to pay a part of the expense with a simple interest on the outstanding amount which can be carried forward. Thus short-term borrowing without begging at neighbors, family and friends and with the ease of paying in monthly installments is made possible by credit cards.

Credit card statements are very handy when you have made a purchase and the article you bought is stolen; lost, damaged or even if the purchase receipt is lost. Some card companies do offer insurance on large purchases. You may vouch for a credit statement at any point of time during payment period to claim for special offers or for cross checking transactions.

A Credit Card comes in very handy during emergency cases during sudden hospital bills, natural calamities, and vehicle repairs or in a crisis when it’s impossible to arrange urgent cash. Many credit card Companies offer enticing schemes on usage of their cards. These range from free miles on air travel, cash back or discounts on certain purchases or surcharge waiving on early payments.

Last but not the least; it helps you make financial transactions between various currencies and countries at minimal charges within a short duration which has been only a dream for decades. These features not only provide flexibility but also security and assurance of successful transactions without involving rocket science.  As it’s the most convenient substitute to paying by cash, Credit Card by all means will reign in as the most preferred payment mode of all times.

All credit cards terms, fees and rates mentioned in this article/post are actual on the posting date. See the current products’ Terms & Conditions on the issuing banks' websites.
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