Why Are Credit Cards So Popular

Credit Card limits for retail spenders

Are you short of cash but desired to buy an item? Here comes the power of leverage whereby an individual can pick up/swipe a credit card to pay for it first before remunerating the bank(s) after a 30-day grace period. Based on historical records, most banks under unsecured loans segment, offer credit limit range of 2-4 times of monthly income. For those who fall under the lower tier category, the credit card limits will be lesser as compared to the higher tiers or high network individuals. It is unsurprising as the banks need to cater to different market needs - lower tier has more difficulty in raising cash flow hence the lower limits being imposed. At times, it is possible to temporary increase credit limits through calling to the hotline. It is totally based on the bank's discretion on the final outcome of increments.

Ease of Obtaining any Credit cards

One of the most easiest skill to pick up is signing on the dotted lines and magically, the credit cards get approved after meeting certain criteria and mailed to the respective home address. Some banks even offer instant banking credit cards within an hour of application! An unsurprising fact is that many credit card holders possessed more than 5 cards in their wallet and the approximate range is about 7-9 cards. This is a boatload of plastics with magnetic stripes to splurge freely. Most banks allow various cards to be used on the condition that they are pegged to one credit limit. In an event a card has reached its limit, the other cards will trigger stoppage and not being able to use. This is to prevent stacking of credits and being unable to pay up in a timely fashion.

Incentives & Perks for using credit Card

In addition to the ease of gaining hold of credit cards, banking corporations have a marketing arm specialized in attracting new & existing clients in taking up multiple cards to increase market share in the credit pie. In this credit booming industry, it is evident that many credit card firms are doing tie-ups with restaurants & cafeterias, together with travel accommodations in hospitality sector, offering wide range of incentives from priority bookings to food discounts. Some even come to the extent of providing signing up vouchers upon new registrations. It is seemingly too irresistable for anyone not to enjoy hot deals in this modern society. Benefits from credit cards are common in casual restaurants and staff often asked whether customers do possess such facilities to enjoy preference rates when dining in the house.

Alternative credit facilities Available

Is credit card merely for swiping only? Well, in this powerful credit spree, cards have advanced till an individual can perform cash advancements from automated teller machines. There is a term for it and is called Overdraft function. It enables the customer of a bank to take up direct cash under the unsecured loan segment and repay within a short period of time. One thing to note is the extraordinary interests being charged upfront. Another good alternative is the credit line function. When a client comes up to take a personal loan, it is being tagged on the credit limits of all cards and the money is being encashed. There are other minor functions such as rebates from online shopping or perks in dining as well. That's the beauty of having credit cards on hand, ability to use in an event of impromptu purchases or big ticket items first.