Using credit cards is becoming a necessity these days. However many people do not want to get a credit card thinking that it puts on many bad credits on them. But it is not so!
Many of the American citizens use credit cards not because they are rich instead they get lots of financial benefits out of their cards.
Let us see what the credit card advantages are…
- First and foremost it protects you from thefts. Credit cards are accepted in many places. So it can be used for any shopping, dining, partying or any other outing purposes. This enables both safe and happy outing anytime.
- Even when there is short of money in some circumstances it is possible to still shopping with credit card. Till a limit of agreeable amount shopping can be done with credit cards. The outstanding balance should be paid within the due date to avoid any extra penalties.
- There is a facility of enabling credit token in the credit card from the account. This keeps the credit card pin protected. When the card is lost or stolen then it cannot be used by anyone beyond a limit say $50. This helps to save the person’s money from waiting.
- On certain cases the credit card owner has the rights to issue warranty on selected consumer products that has been bought through the credit card. In this case the payment should be done in emi and not on a single payment.
- When all the payments are done on time and a good credit is maintained then, the credit card company may offer you great deals on many things. Like a free holiday stay in a five star hotel, lower card processing fees, additional discounts on many purchases which actually the product owner may not give you, etc.
As seen above there are number of credit card advantages which must be known by all the people.
Using credit card is a trend these days and if you are not using it, just try them out.
Many companies give credit to their customers. At times this may cause a cash flow problem if the customers want to extend their credit beyond the time set. By offering an incentive to the customers, it may be possible to get them to pay sooner. This is done by offering the customer a discount on the amount owed if they make the payment within 10 days. Usually a 1% discount is offered to the customer on his outstanding for making the payment in 10 days.
This can be advantageous to both the company giving credit as well as the customer. By paying the invoice early the customer gets a 1% discount on the amount owed which in the course of a year amounts to an 18% savings. At the same time the company giving the discount gets an inflow of cash much quicker which can help its cash flow.
A company may decide to give its customers a larger discount on a sliding scale if it needs its customers to pay and benefit at the same time. For example a company may offer a 5% discount if the customers pays within 6 days. A 4% discount if he pays in 7 days, a 3% discount if he pays in 8 days, a 2% discount if he pays in 9 days and a 1% discount if he pays in 10 days. For a customer who has ready cash, this can be a big incentive as he could save much by paying early and availing of the discount.
The early payment discount is an easy way for a company to shorten its billing cycle. By shortening its billing cycle the company is in a position to improve its cash flow which is always a good thing. The customer too can benefit by the early discount since he stands to save much by making early payments. Even if a customer does not have a credit line or cash to avail of the discount the early payment discount may be small as compared to bank overdraft charges.
Every business tries to reduce its costs and save as much as possible, by availing of the early payment discount that is offered by vendors a business can save and reduce its procurement costs. At the same time a company that offers an early payment discount may find that it saves on the interest costs for the credit that it offers its customers.
The early payment discount is also sometimes referred to as the prompt payment discount or the cash discount. This discount is sometimes known as a sales discount by the seller and as a purchase discount by the buyer. In the world of business these discounts are of importance to both the buyer as well as the seller as they help both the parties save in terms of interest or a reduction in the sales price. They are a form of incentive to both the buyer as well as the seller helping them maintain a healthy business relationship.
We all know that there are different types of loans available in the market, as per the need of the borrowers. At present, the installment loans are very much in demand. Installments loans are a form of loan in which a series of scheduled payments are provided over time. For instance, Tom needs $2,000 for some emergency. Tom goes for installment loan which he can pay back (original amount + 25% interest rate) in the next 24 months. In this type of loan, Tom will instantly get a $2,000. He can pay every month a payment of $106.74 for the next 24 months, regularly.
Payday Loans vs. Installment Loans
The new form of lending is getting really popular in almost all parts of the world. The Installment loans UK has surpassed the payday loans scheme. The payday loans are usually provided for a shorter period of time with high rate of interest. The applicant has to pay back the amount in a lump. In contrast, the installment form of loan payments is spread out making it easier for the borrower. Hence, payday loan borrowing is facing decline because of the shift of the borrowers to the installment loan scheme.
Supports Bad Credit
This form of lending in installments is very much used to build a good credit by all those borrowers who have a bad credit history or absolutely no credit records. Since, it is easy to get and convenient to pay back with a reasonable amount of rate of interest, it can help all those lenders who are waiting for an opportunity to improve or build a good credit records for future references.
Therefore, if a person is looking for instant loans that can fulfill their immediate needs, but are afraid of high rate of interest and paying back the loan amount in lumps, then the installment loans are the best way out for them.