WHAT IS A
A credit card is a
payment card issued to a person for purchasing goods and
services and obtaining cash against a line of credit established
by the issuer.
It can be of two types:
1) Those issued by merchants and vendors, such as
department stores or oil companies,
2) General purpose credit cards issued by banks.
Any card, plate, or coupon book that may be used repeatedly to
borrow money or buy goods and services on credit.
credit card can provide convenience and allow you to make
purchases with nearly a month to pay for them before finance
charges kick in.
A credit card allows you to buy things even though you might not
have the money to pay to pay for it right away. The credit card
company lets you spend up to an agreed upon dollar amount
and then makes additional money available to you as you pay off
what you've spent. You must pay at least a minimum amount by the
due date, which is generally once every month. And you
have to pay finance
charge and interest on any amount you do not pay by the due date.
While they can be very useful, but it can also be risky.
Even people who are usually good with their money get into
trouble with credit cards. The main problem with credit card is
that people use it too often and let their debt add up. Then they can
only pay back small amounts at a time. This ends up costing a
lot of money in finance charges.
BENEFITS OF CREDIT CARDS
What are the benefits of having a credit card?
A credit card makes it easy for
you to buy something now and pay for it later. It's much safer
and comfortable to use a credit card than to carry around
cash. If you lose your credit card, you can ask your credit card
company to cancel your card, so that no one else can use it. But
if you lose cash, your money is gone.
Credit cards are also
convenient. You can use them for your different needs like
to make hotel, car rental and other reservations. You can even
buy items over the phone or online. You can also use credit
cards for emergencies, like unexpected car repairs, when you
don't have the cash to cover the expenses. Using a credit card
provides you with a credit history, which helps to get
home loans and other credit in the future.
OF CREDIT CARDS
All credit cards charges you for not paying your balance
in full each month. Key credit card terms to look at are the annual
percentage rate (APR), annual fee, grace period, and late
Credit card with a grace period enough
to pay your bills on time without charging you heavy interest.