Hi,we will continue this week with our topic – credit cards, as we review how your purchases are protected by the credit card company.
Protection of Purchases – Credit cards may also offer you additional protection if something you have bought is lost, damaged, or stolen. Both your credit card statement (and the credit card company) can vouch for the fact that you have made a purchase if the original receipt is lost or stolen. In addition, some credit card companies offer insurance on large purchases.
Most credit cards do not require you to pay off your balance each month, so even if you only have $100, you may be able to spend up to $500 or $1,000 on your credit card.
While this may seem like ‘free money’ at the time, you will have to pay it off — and the longer you wait, the more money you will owe since credit card companies charge you interest each month on the money you have borrowed.