It is hard for us, people of the 21st century, to deny
the fact that credit cards have become an indispensable part of our lives. Despite
the fact that almost every one of us has a credit card, it seems that people
only know that they can use them instead of debit cards and that they have to
pay off before a fixed date. However, there are many benefits to using a credit
card that you might not be mindful of. If you don’t know the difference between
a debit and a credit card, read this article
and then revisit this page to dig deeper into credit cards.
MasterCard and Visa, what are they?
Take a look at your cards, whether debit or credit, and you will
find to the bottom right an icon that reads either ‘MasterCard’ or ‘VISA’.
MasterCard and Visa are credit card brands. They don’t issue the
physical cards that we use. They only provide the payment service and mechanism
to those banks, who in return issue the card. It is also not up to them to
determine what benefits come with the card. This is determined by the bank.
By and large, MasterCard and Visa are the most well-known Credit Card brands and they are accepted as payment methods worldwide. We as holders of
credit cards don’t have anything to do with either brand. All that should
matter to us is the benefits that we can get using the credit card.
Benefits of using a credit card:
1. Protection: In any case of fraud, you are by law guaranteed to
have your money back. Your only role here is to report any scam that might
occur immediately to your bank.
2. Cashback: Simply put, this means that you get money back for
using your credit card to pay. The calculation method (a percentage of the
spent amount or points) and how you can spend the reward differ from one bank
to the other. Therefore, you should read the details carefully before
purchasing the card.
3. Air miles: You can apply the same concept of cashback, but here
the rewards are related to flights. So, you accumulate ‘travel points’ by using
your credit cards to pay for your purchases and you get rewarded a specific
amount of money off on your flight ticket, hotel stay, access to luxurious
airport lounges, etc.
4. Islamic Credit Cards: As the concept of credit cards is similar
to loans, some banks issue Islamic Credit Cards where no interest is applicable.
5. No salary transfer: Purchasing a credit card does not usually require
a salary transfer. You can buy the card from whichever bank you wish, provided
that you fulfill that bank’s criteria for credit card holders.
The benefits vary depending on the bank that you are dealing with.
Some banks provide more benefits than the others. You should also bear in mind
that sometimes annual issuance fees apply on the card. Therefore, you should
look at all the aspects when comparing between the banks and decide wisely.
Click here
to learn about the credit card options you have available in Jordan.
With students getting ready to go back to school and because of the high school fees in Jordan, par... Read more