The credit card has become important part of daily life nowadays.The credit companies are doing their best to improve their customer base. If you are going to have credit card, then you must read out this article, as it comes the things you should understand when using your credit card.
Credit Card isn’t a Cash Substitute
Credit card is pretty easy to use. Just matter of few minutes and you can have cash in your hand. With that, it’s quite common to get the feeling as if credit card is cash substitute. If you get that feeling, and start using it as cash substitute, then let me tell you, sooner or later, you will fall in credit trouble.
Good Credit is Important to Have
Good credit is important thing to have. Sadly, many people who use credit card do not know the importance of good credit. If you are out of them, let me tell you that you need good credit for buying or renting home, getting new job, getting things on installments, getting other services etc. So, when using credit card, you must understand the importance of good credit.
Good Credit Takes Time to Happen
By now you know the importance of good credit. Just to tell you here, good credit does not happen in short time. It’s lengthy process and takes time to happen. So you must be patient for it. With good credit you can have low interest rate money with ease. So, you must know the things it take to get a good credit.
Debt can Happen to Anyone
Debt is something that can happen to anyone. Too much debt is not only bad for your mental health, but also can show its bad impact on many other things. If you get too much debt, then your profile will look bad for future money lenders. Who knows you may be in need of money in near future? Poor profile will result that you won’t get debt from the future lenders easily. Poor financial decisions are what cause the debt. If you want to stay away from that awkward situation, you must take financial decisions with patience and deep thinking.
Well, credit card can work out as boon or curse depending on how you use it. Many people make it curse just because they don’t know how to use it. If this is the same with you, then credit card is not meant for you.
Everyone will found of ways doing this in more easy ways. This is completely technology generation and many of us are finding ways to do things in more easy ways. Cards are one the best options as they are providing easy way of money transfer and online shopping. During our travelling we generally prefer taking cards with us instead of carrying money. Now-a-days we can find ATM centers in almost all centers. Mainly for online shopping Cards will play a prominent role. We can use cards for instant transfers which is very necessary. We cannot go to bank for each and every transaction and can use cards. Between debit card and credit card, we are using credit card most vigorously. For some transactions it will only accept credit cards for some security reasons. In such cases we have to use only credit cards but it will charge some extra charges.
- For all online international transactions it will charge some extra charges for some conversion reasons.
- If we miss to pay our credits in time then we have to pay late fine fee also.
- Some banks will also charge some rate of interest. In order to avoid this we have to minimum amount at least.
- For some transactions we have to pay POS charges. This will not be applicable to all transactions but for only some prescribed transactions.
- For some large business type of credit cards, they have to pay some standard amount even if they fail to use their credit card.
- Convenience fee and Surcharge fee are some of the basic charges that we have to pay for some limited transactions only.
Ask for Low Interest Rate
If interest rates are high, your credit will become expensive for sure. Such a credit will be nothing less than a burden for you. If you have good payment history, and good credit score, you are always free to ask for low interest rate. That can help you pay back the debt amount with ease.