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Credit Cards vs Cold Hard Cash


The security benefits of using credit cards have long been recognised. Even with the extra attention that is being placed on identity theft and credit card fraud these days, using your credit card is still one of the safest ways to pay for things available.

All credit card companies will provide you with an emergency number to call if your card is lost or stolen and in the vast majority of cases, any loss that is incurred by your account will be fully refunded by the card provider. This will always be the case unless you are somehow involved or to blame for the fraud, such as by giving out your security details to someone you shouldn’t have trusted. This means that even if your cards and information are stolen, you generally have nothing to worry about so long as you report the incident. Replacement cards can be sent to you very quickly.

Another benefit of credit cards over cash is that you can use them with ease abroad. They are fast becoming an internationally recognised currency. While cash will be accepted everywhere within your own country, credit cards are accepted at a huge number of locations all over the world. As soon as you step off a plane, and especially if you are travelling through a number of countries, a credit card will be an invaluable means of payment everywhere you go.

Another huge benefit of credit cards, that is really only beginning to show itself with the growth of Internet shopping, is the ease with which payments can be arranged online. There are thousands of websites now, all over the world that will conduct business with you and give you access to great prices if you have a credit card to pay for it. Gone are the days when cheques would be mailed in the post. Now, with new payment systems such as pay pal, even individuals can accept credit card payments with great ease and for very little expense. You should take care with your personal information and payment details however, and conduct business either via an intermediary such as pay pal, or only with companies you know you can trust.

The disadvantage of credit cards is that they can cost you money. You pay interest on balances that you carry from one month to another and if you do use your credit card abroad, you will have to accept additional charges from your card provider.

Money which can be used to buy anything we want, yet which we do not hold, feel and count in our hands. Money which can both save our lives and destroy it. Money is a necessity and our entire life revolves around it, right from figuring out means of earning it to how to spend it and our efforts to save it for a better future.

The modern concept of money doesn't involve its physical presence, but rather presents itself in the form of a card, a magical card which can instantly make wishes come true. The Credit Card has revolutionized money, transcending physical boundaries and opening up multiple new avenues. There are cases where the only item we need is our credit card and the prospect of carrying money has changed drastically.

Who are the people with no credit history?

Credit History is associated with everyone who has used a credit card for any purchase. The people with no credit history are mostly students and new immigrants in a country, who have never taken out loans. In the case of card applications, an individual with bad credit history has a better chance of getting a credit card than a person without any credit history. There are however avenues to get a credit card with no credit history.

Individuals who wish to apply for credit cards without any history can choose from some of the options below, which can significantly improve their chances of getting that elusive cards.

  • Student Card - Most major banks and financial institutions offer exclusive student cards targeted towards the student community. These cards do not require an applicant to have previous credit history and can be obtained if the individual meets certain criteria. Having a job can make it easier to get the card approved and banks prefer to hand out this card to those who have a source of income.

  • Pre-qualification Test- Certain banks allow individuals with no credit history to take a pre-qualification test online. This test lets them know if they can get a card approved and the reasons why the card was denied, if it is rejected. This information could help one prepare better the next time they apply for a card.

  • Store Credit Card - Certain nations have the concept of store credit cards, which are easier to get and do not need any credit history. These cards have low credit limit and high interest rates and generally have cards which are not Visa or MasterCard approved.

  • Prepaid Cards - Individuals with no credit history but with disposable income at hand can apply for prepaid cards. These cards are as good as normal credit cards but the credit ceiling is limited to the prepaid amount. There is no fear of exceeding credit limits or late fees with these cards.

  • Co-signed cards - Banks offer co-signed cards for people with no credit history. These cards require someone with decent credit to co-sign for you, with their financial backing increasing your chance of approval. Co-signed cards can be a smart move if you have someone who trusts you and is willing to sign on your behalf, though they also allow your financial transactions to be viewed by the co-signee.

  • Secured Credit Card - Secured cards are similar to normal credit cards in most aspects, except the fact that one needs to make a security deposit in order to be eligible for a credit limit. Individuals without credit history can choose this card if they have suitable security deposits with them, which will essentially guarantee them the credit card.

Applying for credit cards without any history can be a tedious and long drawn affair but one has to remember that applying with any and all banks is not a smart thing to do. Rejection is a part of this process and one has to be smart enough to choose the alternative cards mentioned above in case of rejection. Getting any of these cards approved is likely good enough to get an individual a credit history, making it easier for them to get better credit options in the future.