Credit cards are used everywhere in the world. This is the most common way to buy things and pay bills or taxes these days. At the same time, though, this system is very weak. When a credit card is stolen or lost, its number can be used illegally by people who shouldn't, and a lot of money will be lost. There are some precautions that can be taken to make transactions safer, such as using one-time-only numbers.
But the benefits of credit cards are so important that almost everyone has one. "Buy now, pay later" is one of the best things about it. People can take advantage of this chance to buy things and pay for them much later. The incentives are also a very big plus. Credit card companies are offering reward points, air miles, and other ways to keep customers coming back. When a person has a good reward scheme, he or she can save a lot of money by using their credit card often and always paying off the balance. Motivations change all the time, and the new reward systems are getting better and better.
The fact that you don't need cash may be the best thing about credit cards. The person with the card only has a small piece of plastic in his wallet. The cardholder won't pay with cash, so he won't have to worry about thieves being tempted by a nice wallet. Every day, credit cards are used for a lot of different things. When someone wants to rent a car or check into a hotel, the rule that they can't pay in cash is an important one. Credit cards are often used as a deposit.
When someone buys a vacation or plane ticket with a credit card, the customer gets insurance for free. It would be smart to see if the credit card offers it. Another benefit is the purchase protection, which protects the buyer when he or she buys faulty goods. Most of the time, they are fully covered for a few months. Some policies also cover the loss. The protection against loss is a good feature. If a person needs money to buy something but loses it, it's his bad luck. But the problem won't happen if he has a credit card. Problems can be avoided by calling the credit card company quickly to cancel the card. In a few days, you will be given a new credit card. Any issuer can set his own rules, but if the credit card number is stolen but the card itself is still in the owner's possession, the issuer can say that the owner is not responsible for anything.
Another benefit of credit cards is that they can save you money when you travel. If someone needs to travel and needs to change their money (from USD to Euros, for example), they might be surprised to get a very bad exchange rate. Also, he will have to pay some fees at the bank. The credit card makes these things less expensive and much easier to do. Hotels and tourist resorts in most countries accept all of the major credit cards.
