What do you need a credit card for?

A credit card is often seen as the cause of debts. That image is one-sided and unjustified.

The credit card is first and foremost a versatile payment method that comes in handy in many situations.

Pay across the border

Pay across the border

For example, a credit card is very useful when traveling abroad . Your normal bank card is sometimes useless across the border.

Unlike in the Netherlands, you can pay with a credit card in most supermarkets and large stores abroad.

If the amount is in USD, then paying with a credit card does not entail any additional costs. If you pay in a foreign currency, take into account a surcharge of 1.5 to 2.5% at the normal exchange rate.

You also have this storage with other payment methods, not just with a credit card.

It is smart to choose a credit card with a lower exchange rate if you use it more often than incidentally abroad.

Gold cards usually have the lowest storage. All reviews on Charles Barber mention the exchange rate surcharge.

Book and reserve

Book and reserve

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

With your credit card the deposit that you have to pay is arranged immediately.

At the pump

At the pump

Car drivers also benefit from abroad with a credit card in their pocket. At many gas stations you can pay directly at the pump .

You insert the card in the machine, key in your pin code and after confirmation remove the card again. Then you can take the hose, refuel with gas, possibly have a receipt spit out and drive away.

So you don’t have to wait for the exact amount. If the gas station is manned, you can also simply pay at the cash register. Certainly with Visa or Mastercard.

Parking and paying toll

Parking and paying toll

If you are driving internationally on toll roads , you will have access to the gates with short queues with a credit card. Paying with a credit card (just insert, PIN code is not even necessary) is much faster.

The same principle of just plugging in   applies to many modern parking areas . You check in and out with your credit card. You will see the amount debited on your monthly statement.

Cash Cash

Cash Cash

Abroad (and also in the Netherlands) you can withdraw cash with a credit card at almost any ATM, called an ATM in banker’s language.

But relatively high costs are involved. So only do that if there is no other option. Each admission costs you 4 to 5 USD.

Make purchases online

Make purchases online

Finally, the credit card is super handy for all your orders on the internet . Most well-known web shops accept Visa and Mastercard.

You enter the credit card number, plus the three-digit verification code, also printed on the card. In  shops you may also need to use your card scanner if you have a bank credit card.

An advantage of paying online with your credit card is that an incorrect debit is reversed, for example when the product is not delivered. This is not possible with iDeal.

With most credit cards, your purchases are also temporarily insured against loss and damage.

Known benefits

Known benefits

Furthermore, a credit card is of course useful because of its known benefits.

You always have money in hand and you can still make purchases if there is not enough cash in your account for a while, or if the salary is not yet received. In emergency situations you are very happy with your credit card!

You can also possibly spread out an expensive purchase . But then you borrow money and you have to request that separately from the card provider.

Finally, a credit card can be very useful to separate certain expenses from others. You get a separate overview of it. You can use that for your administration or housekeeping book.