What do you need a credit card for?

Most people in these days have a credit card. And the advantages of a credit card are obvious. For example, you can use it to conveniently pay abroad, make online purchases or simply access it in the event of a financial bottleneck.

How does a credit card work?

credit card work?

First of all, very few consumers are aware that using a credit card is usually a loan. So, by paying with a credit card, you get a corresponding payment term, which in principle is nothing more than a loan. And this is because your own account is only debited accordingly after a few days or possibly after weeks.

If you look at the credit cards nowadays, you can see that the functionality of the credit cards has hardly changed compared to the past. Only the use of credit cards has become significantly more these days. This may surely be because a credit card used to be a status symbol and not everyone could get a card. This privilege was therefore reserved for a few bank customers. But of course that’s different now. Because haute almost every bank customer has his own credit card which can also be used in many ways.

But the range of different credit cards has also grown significantly. There are now so-called prepaid credit cards that can also be used by young people, right through to the extremely versatile premium or gold or platinum cards , which also include other useful additional services.

Credit cards are very versatile

Credit cards are very versatile:

If you asked one or the other cardholder: How they use their credit card, most would answer that they use it for cashless payments. But with the card you can not only pay conveniently in restaurants, shops, hotels, petrol stations or for booking holiday trips etc., it also offers you other payment options. For example, you can pay with a credit card online at the numerous online shops, mail order companies or on other websites.

Withdrawing from cash is also possible with a credit card. This is of course particularly advantageous when you are on vacation and urgently need money. So you can very quickly and easily withdraw the desired amount from the corresponding ATMs. But other important additional services can also be included in a card. When purchasing a credit card, some providers offer various insurance policies that are already covered in the annual fee. This may well be important insurance that can be particularly useful on vacation trips. For example, this can be important foreign health insurance or luggage insurance.

However, other additional services can also be included in a credit card. In the premium credit cards, in particular, there are other sweets that can bring some advantages. For example, there are some discounts or discounts for different services. On the other hand, discounted tickets can also be obtained, for example, for coveted concerts or other events that you would not have received under normal circumstances.

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