When correctly managed, a Tesco credit card used online is a versatile financial tool for daily life. This small rectangle of plastic can help you create a respectable credit history. Also, it can function as a secure method of buying things online, whether it is a European city break, or your Tesco grocery shopping for the week. Here are some of the benefits and drawbacks:
Tesco Credit Card Online Advantages
Your Credit Score
If you approach it in the right way, regularly using your credit card is perfectly OK. Actually, you should use it often and fully repay the balance every month. This way, you will rapidly accumulate an impressive credit score. Regardless of whether you are seeking a loan or a mortgage, financial lenders will be keen to do business with you.
Versatility and Convenience
There are several reasons why credit cards are convenient to own. If you have ever been short of money, or unable to find an ATM machine, a credit card offers you access to cash round the clock, wherever you might be. This versatility spans continents as well — credit cards can be used globally, so no currency is out of bounds. If you do not want to carry around lots of paper money, a card is the solution, whether abroad or at home. Furthermore, if you have a car breakdown and require funds quickly, or you are faced with unexpected medical fees, you can settle emergency costs immediately and repay the balance at a later date.
If you wish to shop on the web — whether it’s for a hotel reservation, theatre tickets or a new outfit — using plastic is both simple and safe. This is due to cutting edge credit card fraud and security measures. These days, banks closely monitor credit card payments to check for suspicious activity and ensure that you don’t lose out. If you pay by debit card, the cash vanishes from your bank account straightaway. However, if you are the victim of credit card fraud, you will not have to pay for any of the fraudulent transactions. Instead, you can just inform your credit card firm and they will deal with everything. Moreover, it is safer to pay by credit card when you are overseas as well. Suffice to say, if your card gets lost or stolen in your hotel, you can contact your credit card firm promptly and arrange for a new card to be issued.
Less Restrictive Than Debit Cards
Some firms will not accept payment by debit card, whereas others — such as car and hotel rental firms — insist on debit card payments when you make your deposit. You should opt for balance transfer credit cards. By doing this, you can save cash with credit card firms that provide nought percent balance transfer periods for new customers.
Tesco Credit Card Online Disadvantages
Credit cards are not “free cash”, but they do allow card owners to go shopping when they do not really have the funds. In contrast, debit cards only allow you to spend the money you have available. If you exceed your credit limit, or you are late with payment, interest and fees can escalate. This can prove expensive and do serious damage to your credit score. Similarly, if you only make the minimum payment each month, as opposed to fully repaying the balance, it might take you years to fully repay your credit card. If used wisely, credit cards can offer you financial freedom, allow you to better manage your cash, and protect you from fraud when you make online purchases.