The most alluring fact, while buying a credit card is that the purchases made through these plastic cards are totally safe. Yes! Most credit card companies will mention this feature to get you to buy their card. In fact, this is the biggest reason people choose to buy credit cards. You might not be aware that the card in your pocket is not only helpful in buying things when you don’t have any big cash, but also maintains the value of things in cases of damaged goods or company going bust. Not only are the transactions you made safer, they also maintain the security of the goods and your money. How? Find here!
Characteristic features of credit cards:
Purchase protection: The most attractive part about credit cards as compared to the debit cards is that the former comes with a purchase protection guarantee. Most of the companies offer this protection which assures that in case the goods and services purchased by the card is stolen or lost within a specific time period then the buyer will get his/her money back. Another part of this protection scheme is that if the company from which one has bought the stuff goes bust and you have some pending money with them, then also you will be reimbursed the amount that is left with the company. The credit card company manages all this for you. This is the foremost reason why people prefer credit cards over debit cards.
Free identity theft cover: Most of the credit card companies offer free identity theft cover. This cover is highly beneficial if by any chance your card gets stolen and someone is using it in your name. The cover offers certain free credit checks so that you can keep a tab on any suspicious activity or credit applications made by using your credit details. It also offers an ID fraud helpline to assist in tapping any fraudulent activities.
Payment protection insurance: Another facility which can be clubbed with the credit card is payment protection insurance. You need to pay monthly charges for this, in return of which the insurance company ensures repayment of credit money. This is limited to the scenarios when you are sick, unemployed or disabled to make the repayment. It is best to buy payment protection insurance when you do not have a partner to support your monetary issues.
Free perks: Except payment protection insurance, all the safety perks are free and does not weigh you down with extra charges. Thus, a credit card proves to be a good investment as it allows you to borrow big cash and protects your purchases without any fees. It is more reliable than a debit card.
To sum up, all these features of credit cards make them highly efficient and reliable. Your purchases are safe as the card companies manage the losses or damages associated with the goods.
However, all features may not be offered by all credit card companies. For this, you have to shop around and find the one with maximum safety features.