Credit cards are a very convenient means of sending money especially to people who may be residing in far off places from where we live. Since most credit card service providers have linked their services with other cash transfer organizations across the globe, moving money from one point to the next is made simpler because all you need to have is a credit card that is acceptable.
Factors to consider when transferring money by credit card
There is always a reason behind any action however useless or even foolish it may seem to others. By this I mean a person should first be able to establish the reasons behind the need to transfer money using a credit card. Basing on the reason it would be easier to determine what transfer rate is acceptable or viable judging by the possible gains or losses associated with the transfer. For people living apart, transferring funds from one person to the next can be very tricky were it not for the establishment of this credit card money transfer systems.
Another important factor is the location of the recipient as well as the financial institution from where the recipient will collect their funds. This may have an impact as some institutions charge different transfer fees and interest rates. Besides these, the amount being transferred may also determine the transfer rate. From facts, it is more expensive to transfer little amounts as some institutions will charge certain minimal amounts regardless of the amounts transferred.
Advantages of credit card transfer money.
To begin with, the credit card transfer enables people to send money to their associates in distant places making life more comfortable. This transfer can be carried out across different financial institutions making it flexible enough for both parties. Banks and other financial institutions have limits on their working hours; this may leave some one who wishes to transfer funds to another arty hustling to beat the time dead line stipulated by the institutions. This kind of inconvenience cannot be associated with credit cad money transfer as you will be free to transact business regardless of the time of day month or the season.
Disadvantages of credit card transfer money
Other than the risk of identity theft, the main disadvantage of credit card money transfer maybe the possibility of overspending since it may be too difficult to limit your expenditure when you always have the ability to spend in the form of a plastic card. Such a situation if not checked may see you spend more than you actually planed to spend.