Understanding Credit Cards

Understand Credit Card

The modern day technology has given us many things and Credit Cards are surely one of the best ones. A credit can is the best replacement for money. It’s an electronic card that you can carry in your pocket and then pay your expenses in shops using it. The credit card is to be inserted in the credit card machine, which almost every shop has these days, and the payment will be done from your bank account. You will get your credit card bill at the end of the month with the added interest to it. You will have to pay the bill in time.

Advantages of Credit Cards
The Credit Cards have some great advantages for you. The main advantages are:

  • If you have Credit Cards then you never need to carry too much money with you
  • The Credit Cards can help you with financial emergencies if you are out of home
  • There are many agencies or shops that don’t take a cheque but they are always ok with Credit Cards
  • The Credit Cards can be considered as electronic loans if you think about it. you can buy something with it and then pay letter
  • If you change town then Credit Cards will help you to carry out your expenses until you settle down in there
  • There are many Credit Card companies which offer you a great deal on currency exchanges when you are traveling to a different country temporarily
  • When you pay with Credit Cards, you get receipts for the payment which is helpful for later calculations

Disadvantages of Credit Cards

  • Credit Cards are not all goods as there are many disadvantages of it too. Some of the main disadvantages are:
  • Credit Cards increases the chance of identity and money theft I f you loose the card or give the credit card number to someone you should not trust
  • The Credit Card bills come with added interests and if you don’t pay in time then the amount of interest increases
  • The interest rates are added values for the things you buy with your Credit Cards
  • A big problem with Credit Cards is that you can actually see the money you are paying for things and that leads to more expenses for a lot of people
  • The worst thing about the Credit Card is that you need to pay some charges every month even you don’t use the Credit Card to buy a single thing. This is a huge disadvantage of credit card.

The Credit Card bill

The Credit Card bill is something that comes every month to your provided address with the payable amount in it. You will need to pay the money you have spent with your Credit Card with the added interest rates and service charges if any. The interest rates may differ for different Credit Card companies but they are always a bit high. You have to pay the bill within the given time or else you will have to pay a late fee too which is even higher.

Leave a Reply

Your email address will not be published. Required fields are marked *