Financial Information
Why do people use credit cards if they have the money in the bank and can use their debit card?
Why do people use credit cards(in particularly wealthy people)if you have the money in the bank and your Visa or Mastercard debit card issued by your bank can be used anywhere?I understand that some credit cards come with extra little perks and benefits. But are they really worth it,To pay interest rates to purchase something on credit when you have the money to pay for it.
3 answers.
1) Record Keeping – If you have good credit and plenty of money in the bank, credit cards are still a good way to keep track of purchases. If you pay in cash, it’s easy to lose track, and paying with checks is going out of style and requires tedious book keeping. Credit cards come with their own book keeping. You just have to pay them off each month to avoid the interest.
2) Security – Why not use a debit card then? Well, credit cards also come with better security. You are protected on purchases, such as the guy who wouldn’t deliver the carpet I purchased. Debit cards are similar, but don’t come with the same kind of purchase and fraud guarantees. Cash of course offers no guarantees. Since I paid with VISA, all it took was one phone call from them and he delivered my carpet within the hour. Plus, it’s easier and safer to carry credit cards than all that cash. Just keep the 800 numbers handy in your house, in case your wallet gets stolen and you need to cancel them.
3) Convenience: How else do you make purchases on-line? Credit cards.
So the bottom line is, for people who really don’t need the credit or the loans, credit cards are still a highly functional convenient, safe, way to make financial transactions with built in book keeping.
