What is Credit Card

It’s a Plastic Card with dimension of 85.6 MM & 53.98 MM inches, In today world the above said card size deciding most young people’s life. By using the card you can buy or avail any services and important thing is you can the money after a month or so...

 

There are many banks providing Credit Cards. With great marketing strategies it easily goes to the targeted working segments. Most of the credit card providers are slightly wary from others. So its better to take some time to research on this before taking any Credit Card.

 

Warren Buffett about Credit Card and Credit

 

Living on credit cards and loans won't make you rich. Warren Buffett has never borrowed a significant amount -- not to invest, not for a mortgage. He has gotten many heart-rendering letters from people who thought their borrowing was manageable but became overwhelmed by debt. His advice: Negotiate with creditors to pay what you can. Then, when you're debt-free, work on saving some money that you can use to invest.

 

How to get a Credit Card

 

Its really simple to get a Credit Card by simply filling up the application forms, if your application approved by banks you will get the Credit Card within a month or so. But bank will see your age, Income, Credit History & CIBIL Score etc.,

 

You should know following points before / After you get a Credit Card

 

Credit Limit

 

Banks will defiantly will fix a Credit Limit for you,  For example 50,000 you cannot exceed this limit certain banks will allow you to exceed this limit with charges.

 

Credit Period

 

Banks will allow to repay the money with certain period of time 40 – 50(Differ from bank to bank) days with no interest, but if you’re not paying you have to pay interest from the date of purchase.

 

Minimum Payment Due

 

In your statement you can see minimum payment due, most of the banks will give this option to pay only 5% or little extra from the total bill and balance you have to pay with next bill with interest.

 

Credit Limit / Cash Limit

 

Credit Limit and Cash limits are two different things in your credit card, Credit Limit will allow you purchase or avail any services and pay through card. Cash Limit is for withdraw money directly from bank ATM by using your Credit Card.

 

Still there are lot more you have to learn before taking credit card!!!

 

Advantages of Credit Card

 

It is very easy for transactions

No need to carry cash all the time

Very useful when it is very emergency like medical importance

Its like a quick loan

Reward points

 

Disadvantages of Credit Card

 

Crossing your Credit Limit

High interest Charges

Many of them no understand how Credit Card works

Many of them are little bit scary about Credit Card because of not knowing completely

Online Security

Tips for Credit Card Holder

Don’t use when you’re unable to pay back within the credit period

Pay your credit card bill on time and maintain good credit history

Read the terms and conditions

Keep your monthly credit limits and don’t cross those limits

Go through your credit card statements.