Credit Cards: Boon or Bane

by : Barbara Camie

Is that so? Let's find out. Suppose you have decided for a holiday to another country then this is where a credit comes in handy. It is much safer to use a credit card, than carrying all the money or travelers cheques and finding the place for cashing them etc.

Credit cards are safe if you happen to pay the dues on time. But the fact of the matter is that the credit card companies favor those people who purchases more and delays payment. So many people are scared to a great degree at the very notion of making a purchase online with a credit card. The very idea of a burglar attempting to steal your credit card information is frightening.

This is where credit cards having disposable numbers happen to be more popular among consumers and also to businesses. The companies that issue these cards create random numbers, which are meant for onetime use. Their validity will be within the websites from which you make purchases and they will be valid only for a short time period.
This increases the difficulty to robbers, as obtaining this information will be of no particular use to them. Online retailers and consumers are both benefited by the safety offered by disposable credit cards. There is a reduction of risk where a burglar can obtain information relating to an individual regarding a transaction or account details of a number of people from databases. A retailer can carry out instant verification and validation of a transaction. There will be no need for charge backs related to fraud.

The main draw back of a disposable credit card will be that they will not be feasible for certain transactions. Most of the retailers require the card to be shown when an item is retrieved from them after purchasing. This is the case with airline and theatre as well as car and hotel rentals. The card number would have expired when it will be required for another payment. For most of the people card numbers that are disposable will lead to safer shopping online. Necessary precautions need to be taken for making your experience for shopping online enjoyable and safe.

Interest Reduction of your credit card: The Methods.

One thing that we hate most regarding a credit card will be the interest. Interest will be added to the account for each month, which is being charged for provision for borrowing.
It is a way of making lot of money by the adding of interest to card account holders, without which they would fail to make any money.

But the interest of credit cards for the consumers can really be hitting hard. Paying even the minimal amounts can be very difficult for some people at times. Hence rising of interests can become a real concern. Negotiating with the provider may lower the interest rate or a low interest credit card may be applied for and your balance may be transferred over.