We all know about the usefulness of credit cards. However, they also help safeguard our interests in more ways than one. Let’s find out how.
They reduce the chance of fraud.
When you pay with your credit card, it is easier to reduce your chances of fraud and the losses that follow from the scams. Genelia, an assignment and homework help provider for TFTH, says that a thief misused her debit card, and she lost the money but found out about it only a week later. Now, this is a common occurrence and might occur to a lot of debit card owners. Now, what happens is the money that you have set aside for your legitimate expenses or checks, and the payments, which are due, might bounce if there are not enough funds in your bank account. It could make your creditors disappointed for something that’s not even your fault.
Moreover, these delayed or late payments will also hamper the credit score, and reflect poorly in your credit history. Of course, you’ll report about this fraud to the authorities, but sometimes the predator will be caught, while sometimes he might not be caught at all. In case he is found, it would still take some time to retrieve your money. It is in sharp contrast to the fraud that might occur with using the credit card. If there’s a fraudulent transaction, there’s no money deduction from your end. You’ll have to inform the credit card issuing bank, and they’ll take care of the rest. Dan, a statistic assignment help provider with TAE, says that his network Visa card offered him a zero-liability cover when there was a fraudulent purchase from his card. Even Mastercard has this provision. It is undoubtedly a great initiative to popularise credit cards over the check and cash methods.
Keeps the vendors truthful
Let’s understand this with an example.
For instance, you hired a tire contractor to set the entryway flooring for your house. Now, workers come around, they work through the weekend to perform the measuring, cutting, grouting, and managing the spacing, and the tiles. They will do everything to ensure that the entire thing looks good and set the tiles. Once done, they’ll ask for the payment.
For the complete job, they charge you a sum of $5000. So, you draft a check from the savings account to pay for this task. On completion of the job, and the receipt of the payment, they go away. Now, it is not more than 72 hours, and you see the tiles shifting and going all weird. As a result of this, your entryway only looks worse than before. That situation would undoubtedly make you very, very angry.
It is a personal story shared by one of our readers, Karen, an associate with EssayWriter4U.
Now, of course, Karen did take up this issue with the licensing board in her state, but it took her three months for remedial action. All this while, the contractor had her money, while Karen’s house was still messy.
So, the learning is: Whenever you are making a considerable amount of payment, you should use your credit card. In case you do face a problem, you can reach out to the issuer, who can instantly discourage the frauds amongst vendors. They always have some way to resolve this issue. Moreover, if it is a disputed charge, the card-issuing company can withhold the payment of the agent who did the tile setting job. It will not only help you recover your amount back instantly, but the tile setter (as in Karen’s case) will either set your tiles back correctly, or you can find a new agent to do the job.
You don’t have to pay an unnecessary security amount at hotels or car rentals.
Jane, an associate editor of TrumpLearning, says that she always prefers to make payments of car rentals and hotel stays via her credit cards as it is convenient and hassle-free. If truth be told, even the hotels and the rental companies prefer you to make your payments via a credit card over a debit card. When you use your credit card for transactions, it is easier for them to charge you for the damages you might cause to their hotel room or the car.
Furthermore, unless you booked a prepaid hotel stay or car rental, the merchant isn’t always sure about the amount of transaction that you are supposed to pay. However, in case of a credit card, the amount is blocked and set aside for them to be protected from all the contingent damages. Despite it all, if you still choose to pay via your debit card, the company will demand a certain amount as a security, which would often be equivalent to a few hundred dollars. If you wish not to pay this massive security, you could consider using your credit card, and safeguard your interests.
