A credit card provides you with a line of credit for the amount that you have been authorized to use. As you make your purchases, the available balance of your credit line decreases. When you make monthly payments or pay the full balance of your credit card, the corresponding part or the total of the available balance of your credit line is restored. For example, if your credit line is $500 and you use it to buy a $50 shirt with the card, the available balance drops to $450. When you pay your outstanding balance, your credit line will go back to $500. This means that you can reuse it for future purchases, but try not to overdo it because maxing out your credit card only serves to lower your credit score.
There are several advantages of using a credit, which are:
- Being able to plan your expenses and defer payments
- Avoid carrying cash with you
- Keep an organized record of your purchases
- Consolidate your transactions into a monthly payment
- It’s faster and more convenient than writing checks
- Have access to an amount of money that you can use in an emergency
- Have protection in case of cloning, theft or loss
For Online Transactions
For your safety and for some services, online transactions require a credit card, in addition to saving you time traveling to the place where you want to make the payment. Many creditors offer you many payment options for their services, and if you prefer to use your credit card, you have all the security measures that guarantee that your information is totally secure.
Most credit cards generate rewards for your purchases. The annuity can be offset by these benefits. Likewise, by having total control of your electronic invoicing you will be able to know how much you rewards you are earning and how much you are spending.