Consumers Using Credit Cards To Gain an Advantage

More people in the UK than ever before are opting to use credit cards for every day purchases. Whether it be for buying groceries at the supermarket or to donate to charity, our credit cards offer a quick and convenient way to pay.

Online too, they are popular. In fact, when it comes to procuring online goods and services, credit cards are the undisputed kings. According to recent research, some 90% of all online transactions in this country are funded by cards.

In December 2004 this love affair was underlined in dramatic fashion. For the first time in history spending on credit cards rose above the amount we spent as a nation using cash. In 2005, this gap is expected to widen further, the primary factor responsible being the level of convenience that cards bring.

But, besides "the convenience" of credit cards, what else compels us to use them as our preferred method of payment? Here are two further reasons why

Interest-free credit: Unlike cash, debit cards and cheques, credit cards allow users to 'buy now, pay later'. Between 45 to 60 days interest free credit is available, awarding consumers with the best part of two months to organise repayment of the credit advanced.

As an example of how effective the standard interest-free period is on credit cards consider how you might fund a last-minute vacation. You could pay for your vacation in advance, pay for all your meals and souvenirs while abroad, and then return home still not having paid one penny out of your account because of your credit cards!

Consumer protection offered by credit cards companies: When using credit cards to fund a purchase, consumers have a legal right to claim back money in the event that something goes wrong with their transactions. This means that if you make purchases with credit cards but your goods are not delivered, are faulty, or are not considered fit for their intended purpose, then you can receive a full refund from the card companies.

This protection applies to credit card purchases of between £100 and £30,000 only. So, whether you use your credit cards in a UK shop, over the telephone, to buy goods by mail order, for purchases over the Internet, the level of protection offered will be the same.

Credit cards purchases of less than £100 are, in most instances, not covered. Neither are international purchases - something to watch out for when using your cards abroad.

Finally, many credit cards companies provide online fraud protection as part of their package. This means that should you use your cards to fund online purchases from a fraudulent supplier, then you too can claim back money from the card companies.

Credit cards it seems give consumers protection like no other method of payment can!