A credit card combines a payment card, a line of credit, and various benefits and supplementary services, such as insurance. When you make credit card payments, you actually do not use your own money – you use the bank’s line of credit.
By using a credit card, you can benefit from an interest-free period (or grace period) of up to 45 days – no other consumer loan can match that. If you repay the whole outstanding balance within the relevant grace period, you will not pay any interest at all. You can also pay it back gradually; in such case, we will charge you interest based on your interest rate.
With various supplementary services, a credit card can be quite useful at home and away from home. For example, you can use free locksmith services, if you find yourself locked out of your house, or travel without worries with complimentary travel insurance with your card. You can also benefit from various discounts of as much as 50% at designated merchants or contribute to your supplementary pension insurance by simply using your card.
A credit card has Internet and POS payments written all over it. It can also be used for cash withdrawals, but you should actually limit those. There may be fees associated with ATM withdrawals when using some types of credit cards.
Moreover, a credit card is also great as a primary card for hotel reservations or car and boat rentals. Since the bank provides a line of credit with your credit card, it guarantees that you are a credible and creditworthy client.