Saying that credit cards are popular is an understatement. In today’s world, nearly every consumer uses some type of credit card. These thin, rectangular pieces of plastic help people to pay for their purchases all over the world. And, as you’re surely aware, there are many benefits to credit card use.
Canadians certainly know how to take advantage of those benefits. Credit cards that offer reward points, for example, enable people to enjoy many free perks. In order to take advantage of these rewards, credit card balances generally need to be paid off in full. As the Canadian Bankers Association tells us, 70% of Canadians pay their credit card balances off in full each month. Doing so also lets cardholders pay zero interest on their purchases.
What other benefits are there to credit card use?
It helps you to build your credit history.
Without a credit profile, you won’t have easy access to making major purchases such as a home or a car. Your credit history shows that you are capable of making payments on time. It literally helps for lenders to determine whether you are trustworthy or not when it comes to your finances. By using a credit card and making timely payments, you grow your credit score. Of course, not making payments on time can negatively impact your score.
“Your credit score is positively affected by things that show a history of using credit responsibly, such as a history of on-time payments, having held multiple accounts, not having too much debt, and having held access to credit for a long period of time,” explains David E. Slotnick on BusinessInsider.com, “On the other hand, it’s negatively affected by things like missing a payment or being late, or not having much history of holding credit.”
You receive additional coverage on your purchases.
Most credit cards offer their users additional warranties on their purchases. Purchase protection, for example, is a benefit that gives credit cardholders coverage in the event of lost, stolen or damaged items. Extended warranties add time to the warranties offered by manufacturers. That way, if a product is defective or doesn’t operate as expected, a credit card issuer can assist with a replacement.
The Canadian Bankers Association lists such benefits as “coverage for purchases if the item is damaged , stolen or not delivered within 90 days” and “fraud protection with zero liability to the consumer in cases of fraud” as two of the main credit card benefits for consumers. Car insurance, damage and loss insurance and extended warranty programs are also listed.
Do you accept credit cards in your store?
If not, you’re missing out on being able to give your customers a wide range of benefits. At Unity Payments, we believe that the easiest and most convenient way for merchants to accept credit cards is with the Poynt Smart Terminal. To learn all about this revolutionary POS terminal, please don’t hesitate to call us at 1-800-661-3761. You may also email us at firstname.lastname@example.org.