What are the advantages of using a credit card as your primary payment source? The truth is that there are many. Shoppers from all over Canada seem to agree that the credit card is the ideal payment method for their purchases. As a business owner, this is important information. By allowing your customers to use their credit cards to buy from you, you offer a lot of convenience that is sure to boost your sales.
Here are four ways credit cards help shoppers’ lives become easier:
1. They help to build credit. Using a credit card is one of the easiest ways to establish a strong credit history. Having good credit is essential when looking to make a major purchase such as a home or a car. Those without credit cards suffer mightily with trying to secure such purchases. On TheStreet.com, Jeffrey Strain explains just how important it is to establish and improve your credit history.
“Your credit score can affect a wide range of payments, and the better your score, the less you will have to pay,” he reports, “A high credit score may mean you pay an interest rate several points lower on a mortgage loan than the rate someone with a poor credit history would pay; this can mean thousands of dollars in savings over the life of the loan. The same is true with an auto loan. A good credit score can mean paying less on many insurance products.”
2. Customers get more than just what they purchase. When customers use credit cards to pay for their purchases, they often get additional perks. Rewards points and various insurances are among the most popular perks. As well, credit cards often provide their users with the ability to lengthen the warranties on their big ticket items. This is often heralded as one of the biggest benefits of credit card use.
“Some credit card companies provide extended warranties, or price protection on items purchased on a card,” reports Discover.com, “A credit card company may also place a hold on paying a retailer or merchant who delivers faulty goods or fails to produce an order for a consumer who bought the goods using a credit card. That can be an easier alternative to stopping payment on a check or trying to collect cash back.”
3. They help to track spending. Credit cards actually have a great ability to turn people into savvy spenders. Unlike cash, a credit card keeps specific accounts of all the spending that is done. When customers receive their monthly bills, they are reminded of exactly what they purchased and on what date. This helps people to be mindful of how much they’re spending on a monthly basis.
Credit card bills offer consumers the opportunity to curb their spending appropriately. It certainly can’t hurt to keep records of what you buy. Clearly, credit card usage is great for record-keeping. “Your credit card can help you keep track of your expenses,” reports Bank Of America, “Save your receipts and check them against your monthly statement. Notify your credit card company right away if you spot any errors.”
4. They’re needed for online purchases. If you enjoy online shopping, you’re going to need a credit card. “Some of the best deals available are now found on the Internet,” writes Strain, “In many instances, the only way to pay for these Internet purchases is with a credit card. If you don\’t have a credit card, you may have to pay more for the exact same thing you could have purchased online, not to mention the extra cost of driving to get the item.”