Credit card Profit and Loss

Most of are using credit cards for different purposes as they became fashion now a days. Using credit cards is sometimes loss and sometimes profit. Profit or loss depends upon the way we are using it. We can use credit cards for all online and offline applications. It also provides reward points and through this reward points we will get exciting offers and discounts. Instead of burrowing money from lenders, it is better to use Credit card for that point of time as it offers less interest when compared to money lenders. Risk involved is also less.

Credit card Profit and Loss

  • Most common expected and common action if we miss to pay Credit card bills is, they will add interest to our amount. This will increase the amount we have to pay as they will keep on adding interest for every month.
  • Sometimes along with interest we have to pay late fee also adds to your due amount. To avoid this we have to pay some minimum amount prescribed by bank. If we pay dues in time then there will not be any kind of interest added.
  • The background action is, late pay action will affect your Credit Reward points and this will not help you to get much online offers as before.
  • If this repeats for months, then your rate of interest also increases and sometimes you have to double the actual amount. There is no option to escape from this rate of interest except paying minimum dues in time.
  • The bankers will be polite in the beginning, but if this continues they will have their own ways to collect the due amount back. We should not get into that worst position and hence limited usage is very important.

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