What about it, good or bad?
As most of us know, Credit card use is not only convenient, but can be affordable and rewarding if properly managed. Promotions for Travel mile and Rebates are everywhere and all too popular with today’s consumers.
The savviest cardholders fully understand the importance of managing repayment to keep a good credit score and have seen that at the end of the day how limited some of these rewards can be. Try using travel miles and you will soon find out how restricted the time slots and destinations are. Instore credits are great only if you plan on being a return customer sooner than later.
Most of the larger Retailers offer their own credit cards not only to satisfy the convenience part of the shopping experience but create extra earnings from their loyal shoppers that end up paying interest fees.
Unless credit is required to finance a purchase in the short run, interest fees will soon erase any perceived value from promotional credits.
Credit card Convenience is no doubt the biggest advantage to avoid carrying around cash and worth the task of making regular payments every month. But let’s look at how you can benefit with larger transactions when payment can be afforded otherwise.
For example you are planning some renovation work or a new water Heater or Furnace upgrade is being considered. The contractor has your attention with a seasonal promotional offer and has provided a competitive quote of say $10,000. If the contractor accepts a credit card as payment, they are charged the standard 2-3% for the transaction. In this case $200-$300 is a substantial amount to point out.
Accepting credit cards is generally considered as the cost of doing business and nothing is ever offered unless the customer asks. Since some suppliers already have a limit accepting payment by credit card how would you know? Paying by Cash, Cheque or Debit card will negate the card fees to the vendor so why not ask if a discount is available.