Apr 24, 2017 04:20 PM
25067 Views
Hi Friends,
Now a days everyone uses Credit cards, With out credit card there is no day going on, I will share my experience with you now.
A credit card may seem like just another tool to help you make purchases, but it can be much more. When used responsibly, a credit card can help you build a good credit history, allowing you to get loans at favorable interest rates, cheaper insurance and even a new cellular plan. Credit cards can also help you earn rewards on your everyday purchases and protect those purchases in case of theft or damage.
One of the many benefits of using a credit card is that you essentially get an interest-free loan and a grace period of between 21 and 25 days. Here’s how it works: For example, I have a credit card period of Jan. 5 through Feb. 4, with a due date of March 1. Any purchases made within the period can be made interest-free until the payment due date. If I don’t pay the balance in full on or before March 1, I will owe interest on average daily balance.
I will give you a tip to make the payments on time
A minimum payment is the smallest amount of money you can pay each month without damaging your payment history and incurring a late payment fee without any headaches in your daily life & to avoid calls with customer service Peoples
Let me tell you one thing clearly, using a credit card can affect your credit score in several ways, either positively or negatively. You can positively affect the most important credit score factor, payment history, by making your payments on time, 100% of the time. A late credit card payment likely won’t be reported within a few days, but it can be reported to the bureaus and hurt your score.
Credit utilization, or the percentage of your credit limit that you’re using at any given time, is the second most important FICO score factor. We’ll discuss how to calculate this in the next section, but essentially, you should try to keep your debt balance below 30% of your credit limit.
The ages of your newest and oldest accounts, as well as the average length of all your credit accounts, make up your length of credit history. The longer, the better. You can influence this factor with a credit card by keeping old accounts open and active. And, of course, be patient, because building a great credit score takes time.
Many credit cards offer cash or travel rewards on your purchases. These rewards come from any type of purchases you make or the fee paid by a merchant’s bank to a customer’s bank when you use your credit card to make a purchase. Interchange fees vary, but are usually 2% or more, which is enough to cover the rewards rates on competitive Credit cards.
Some credit cards have rewards points of petrol as well to redeem certain types of purchases. However, these tend to be capped at a certain monthly, half yearly or annually If your rewards seem a bit too good to be true compared to typical interchange fees, check your benefits statement for details on spending limits.
On the back of the credit card you will be having CVV Number(3 Digit Number) which should not be shared with any one at any cost, it will lead to misuse of your credit card
We have another option in Credit Cards, if you have another credit card with same limit & if you want to clear the outstanding balance in one card you move a balance from one card to another, typically 3% to 4%. Balance transfers are usually made by people with credit card You should only pay a transfer fee if the interest you would pay on your current card is greater than the balance transfer fee you’ll pay.
Credit card companies like VISA and MasterCard’s are commonly associated with credit cards, but they don't issue the cards or loan the money. The two multinational corporations are among the largest retail payment networks. They facilitate the processing of payments between merchants and banks. They also set the transaction terms and fees for merchants and card issuers.
Some cards may offer cash back as an incentive to use the card, they can help build your credit history just keep a record of your expenses, helping you to monitor your financial activities. They even help to raise your credit score while applying for other loans.
