Today, almost everyone carries a
Credit Card as it has become one of the essential financial tools in recent
years. From purchasing groceries to booking flight tickets, credit cards use as
a mode of payment on account of the convenience and security they provide. If
you’re one of those who is seeking for the best credit card, but confused like
all the other applicants for a credit card, no worries, there is always a key
to a lock. Your job is to find it.
According to Mehul Mathrani, before you choose a credit card, you must make a
great research. Furthermore, he says, it is essential for every credit card
holder to know how to make the best use of credit card otherwise you may find
yourself landing in a financial doom.
Let’s discuss a few important things about the credit cards
Multiple cards to choose from
There’s a wide range of credit cards offered
by different financial institutions. You need to look for the most suitable
card as per your requirements. Due to a wide range of options make difficult to
find the most suitable card. If an individual wants a most suitable card, he
must analyze his spends to see where it is possible to earn sizeable cash back,
rebates, miles, rewards points, discounts, etc. Furthermore, if you’re a frequent
traveler, then a travel credit card will make your trip more enjoyable without
burning a hole in your pocket. And in case you are a Shopaholic, you will get a
chance to enjoy a rewards credit card for shopping trips that give you cash
back on everyday purchases.
It’s a kind of readily available loan
Nowadays people prefer Credit card
over cash payment and its demand is increasing with every day. Credit cards can
be used to buy everything right from the groceries to fuel, flight tickets,
movie tickets, even for booking a table in your favorite restaurant, and much
more. Whether it is a human or a credit card, everything comes with quality and
flaws. In case you treat credit cards as extra money and forget that this is
basically a form of borrowing, you can go into a debt. Banks give you a credit
limit, an interest rate and a grace period. Every individual should manage his
credit card debt efficiently. And you can do it by paying more than the minimum
amount along with the interest imposed on it at the end of every month.
You should know about interest rates
A credit card’s interest rate is the value you
pay for borrowing money. The interest rate is levied on all the purchases made
through credit card and it is called Annual Percentage Rate i.e. APR. If you
want to calculate how much interest you’ll pay each day, you can convert your
annual percentage rate to a daily percentage rate by dividing it by 365.
Furthermore, if you’ll carry forward your APR month to month, all your perks
and rewards will be waived off and you will be left with a good credibility.
How a grace period works
A grace period is the time period during which
a credit card company doesn’t levy any interest on the purchases if you pay off
the new balance in full before the due date. It starts at the end of a billing
cycle to the next payment due date. In case you lose your grace period by not
paying your full balance by the due date, you will be levied interest on the
unpaid portion of the balance.
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