Online credit cards are still considered risky business by some, but they offer many advantages that traditional credit cards can’t touch. Read on to learn more about the pros and cons of online credit cards and decide if they’re right for you. You may be surprised at what you find!
How do they work?
All of your personal information is kept in a secure database. You can use them for payments with online retailers, or even at brick-and-mortar stores. And since it’s easy to get yourself a digital credit card, there’s no reason not to treat yourself when you need something new.
However, if you don’t pay off your balance each month, interest will be charged on what you carry over—so don’t forget about that!
What are the benefits?
With online credit cards, you don’t have to leave your home to pay bills or make big purchases. You can get one-on-one attention from customer service reps via chat, phone, or email.
And if your application is denied—no worries! Many online credit card issuers report to all three major credit bureaus.
Who can use them?
Online credit cards are specifically designed for online businesses, meaning that if you’re a brick-and-mortar operation, you can’t just apply for one. If you do business both on and offline, it might be worth exploring what your bank or a third party provider has to offer—but don’t discount their service as completely unavailable.
Is it really convenient?
Convenience is key when you’re online shopping. Online credit cards can be a great way to save time, but if you find that you don’t receive your goods on time or they are damaged in transit, then it might not be worth it. Before signing up for an online credit card, make sure that it delivers what it promises to deliver.
Make sure there aren’t hidden costs, shipping times are convenient for you and that there are no added costs after signing up for their services.
Should you get one?
While it’s true that credit cards are a great way to earn rewards or finance a big purchase, consumers should approach them with caution. Not only can credit card debt be financially crippling, but many people run into credit problems because they simply don’t understand how to use them properly.
Be sure you know your own spending habits before taking on one of these financial tools, so you won’t find yourself struggling under their weight.
Which ones should you consider?
In theory, any card with a Visa or MasterCard logo will work online. In practice, many brick-and-mortar stores that accept credit cards don’t take online payments from all card issuers. For example, it’s not uncommon for large retailers to offer different deals to customers who pay by Visa than to those who pay by MasterCard.
If you want to use your Visa card at a store that accepts only MasterCards, you may be out of luck. You can avoid these issues by using an online payment service such as PayPal; however, PayPal isn’t accepted everywhere either—especially outside of North America.
Source: Finan6.XYZ