A credit card is often seen as a creator of debt. This perception is one-sided and unjustified. 

First and foremost, the credit card is a versatile means of payment that comes in handy in a lot of situations.

Paying across borders

For example, a credit card is very convenient when travelling. Your normal debit card can be problematic.

If the amount is in other currencies, paying with a credit card does not involve any extra costs. If you pay in a foreign currency, take into account a surcharge of 1.5% to 2.5% on the normal exchange rate.

This surcharge also applies to other means of payment, not just credit cards.

Booking and reservations

In addition, the credit card is the best means of payment for buying airline tickets online and for booking hotel rooms and rental cars.

With your credit card, the deposit you have to pay is settled immediately.

At the petrol station

Drivers can also benefit abroad when they are carrying a credit card. At many petrol stations you can use it to pay directly at the pump.

You insert the card into the machine, enter your PIN code and, after confirmation, remove the card from the machine. Then you can grab the hose, fill up your car with petrol, print out a receipt and drive away.

So, you do not have to wait for the exact amount. If it is a manned petrol station, you obviously are able to just pay at the checkout. Especially with a Visa or Mastercard.

Cash withdrawals

You can use your credit card to withdraw cash at almost any ATM.

But there are relatively high costs involved. So only use this option if there is no other way.

Making online purchases

Finally, the credit card is very convenient for all your online shopping. Most well-known websites accept Visa and Mastercard.

You enter the credit card number, plus the three-digit verification code which is printed at the back of the card.

An advantage of paying online with your credit card is that an unjustified charge will be reversed, for example when the product is not delivered.

Most credit cards also temporarily insure your purchases against loss and damage.

Well-known advantages

A credit card is of course useful because of its well-known advantages.

You always have some extra money and can still make purchases if there is not enough cash in your account, or if your salary has not yet been received. In emergencies you will be incredibly happy to have your credit card!

You can also spread an expensive purchase. This means you are borrowing money and in this case you will need to apply for this seperately to the card provider.

And finally, a credit card can be particularly useful for separating certain expenses from others. You will get a separate overview. You can use this for your financial records or household budget.