Credit cards have become an important medium of transaction, but they have also become a source of identification. A credit card with a photograph can prove to be a very useful source of identification if one wants to rent a car or use an air ticket issued online. Credit cards have become quite popular over the years. Now they are used only for the purpose of transactions, but also for identification purposes.
Nowadays, people carry more than one credit card with them. In fact, research points out that an average American family carries 3-5 credit cards with them. The sheer attraction of the card is its lightness. It can be carried almost anywhere. Travellers, who take trips abroad, find credit cards quite beneficial this way. But, there are, of course, a lot many other features that attract customers from time to time.
Credit card companies are highly competitive. Their aim, of course, is to generate profit by issuing credit cards to premium customers. In earlier times, only premium customers were given credit cards through banks or other financial mechanisms. But now, in many countries where economies are booming, credit cards have become a strong trend. People believe in carrying more than one credit card; they are not satisfied with just one credit card. More credit cards give lot of flexibility for customers, especially while managing the balance transfers. Nevertheless, credit card companies opt many ways to market their services and earn profits out of them
Customers find credit card deals offered to them by credit card companies from time to tie. They find credit card deals with new features and advantages for buying products and services based upon credit card purchases. They also find credit card deals for balance transfers. If people have more credit cards, they can compare credit cards for many such features and take advantage of them. Credit card companies seem to be quite generous when they offer their deals to customers. For this reason, credit card customers compare credit cards for trying to know the better deals and take advantage of them. One another major reason they compare credit cards is for the balance transfer feature.
Credit cards allow purchases at merchant outlets and online as well. If they are managed well, they can work wonders for customers. But customers tend to fail in making repayments that makes them end up with bad debt. If credit cards offer some benefits, they also charge some of the highest interest rates in the market. The credit card advantage of a free interest period should be very beneficial if it is managed well.
But if the interest free period is not take care of while shopping through the credit card, it can cause accumulation of debt due to high interest rates for the customers. Credit cards also have fixed line of credit. The amount to be spent through the credit card is fixed and if the debt reaches to that amount, the card can not only become useless, but can cause additional burden over the financial capacity of the customer.