2 Times When It’s Best To Use Credit Cards

You can’t please everybody. There are still some people left in this world who are vehemently opposed to using credit cards. In fact, many believe that credit cards serve no purpose other than to put people in debt. On BusinessInsider.com, Kathleen Elkins and Mike Nudelman quote personal finance guru, Dave Ramsey as saying “there is no positive side to credit card use.” But, if you ask us, that position is a bit extreme.

A person who haphazardly uses a credit card to make purchases that he or she can’t afford is certainly using it the wrong way. Not being able to pay your credit card bills is certainly a way to create debt. However, intelligent consumers know better than to spend money in such frivolous manners. As Elkins and Nudelman point out, there are several advantages to using credit cards over other methods of payment.

The advantages “include the purchase and fraud protection they offer, and the fact that using them allows you to build the credit required for major purchases in the future, like a home or car,” the duo writes, “There are some situations when it\’s smarter to choose credit over debit — as long as you pay your bills on time, that is.” So when is it best to use credit cards to pay for your purchases?

Here are two times:

1. When making online purchases. If you’re a fan of online shopping – and a large number of Canadians are – it’s practically a must to own a credit card. Sure, some sites allow for shoppers to go the PayPal route. But, as mentioned before, credit cards give their users added protection. So, for example, if a purchased item is not received, a shopper can call his or her credit card company to receive a credit for the purchase.

For added security and peace of mind when shopping online, credit card usage is the way to go. “There are a lot of protections in place for online shoppers using credit cards,” writes Ellen Gans on TheSimpleDollar.com, “Some cards also offer additional coverage in case the item arrives damaged, or doesn’t arrive at all. Make sure you’re shopping on a secure site, and be stingy with your personal information.”

2. When making travel plans. Travel insurances are often heralded as reasons to use credit cards to book flights. Ellen Gans also explains that “many hotels use credit cards to hold reservations. There’s another reason you might want to use your card for booking travel: check to see if your credit card includes secondary travel insurance coverage. Another bonus: certain travel rewards cards offer extra bonuses for travel-related purchases.”

Elkins and Nudelman agree. “It’s smart to use a credit card with built-in travel protection when buying flights, as you never know when something might come up,” they write, adding that “many credit cards offer rental-car insurance, which will cover you in most situations.” At the end of the day, credit cards help to make shoppers feel safer about the purchases they are making. It’s important to provide that sense of safety to your customers.

At Canadian POS Corporation, we offer clients the ability to accept both credit and debit cards using our top-of-the-line POS terminals. Whether you prefer Countertop or Wireless machines, we’ve got you covered! As well, we provide clients with an e-commerce solution that allows them to take advantage of the world’s online shopping craze. For more information, please give us a call at 1-877-748-2884 or email us at info@localhost.