The suggestions to use a credit card for new users:
Here is a condition for new users that first decide yourself to pay your Debt within 25 days. Because charges of credit are very high. That means for new customers or old customers the interest rate is up to 25-30 % which is a very high rate of interest.
Here, I am going to tell you how I use a credit card and pay the money back within the duration
I set up an automatic transaction process due to which my money is automatically deducted because I know you never pay on time. We are always waiting for the due date and on the due date we are not able to pay and the interest rate sucks us and it’s completely a waste of Money.
Always try to push your credit card limit constantly because once a time you can use credit cards for a large amount. Due to this process, you can increase a credit card score.
We have to understand the following things if you are a new user of credit card:
- What is a Credit Card
- Does and Don’ts of Credit Card
- Advantage and Disadvantages of Credit Card
- The benefit of Credit Card
- Credit Card and usage
Now here is a bonus point for you!
Banks are a sucker’s bet by paying you cash in credit cards. They charge a high-interest rate on the cash so if the bank sends you cash, destroy it immediately and don’t be a sucker.
To optimize your credit card wisely you should have regularly at least 4-5 times to increase a credit score and optimize for the best. And you have 2-3 credit cards from the same bank, please avoid your credit score below 25-30%. The zero balance will affect the best use of your credit card.
1) What is a Credit Card?
In actual credit cards consider a black magnetic stripe on the backside which has your all information inbound in it and is made up of plastic.
Due to the information considered with that magnetic stripe do not temper your card if you do this you lost your identity information with it.
In India Mostly the entire bank-issued credit card like SBI, HDFC, Bank of Maharashtra, Punjab national bank, etc. Some bank-like American express also issued their credit cards.
Every bank has different policies and they assign different credit on their credit cards issued by different banks.
Yes, of course, you can purchase from an online shopping mall and make your shopping with the help of credit cards up to the assigned limit.
A credit card gives you a limit per month after you pay your debt then new limits are assigned to your card.
Now the question is what is the concept of Credit Card?
So, wherever you go shopping you make a payment through a credit card the bank will pay for you on the behalf of the merchant, and with this process, you can make a happy shopping trip.
you can save money in ATM.
At the end of the month, all the expenses made by you the bill is sent by the bank to you through the mail. According to the details maintained in the bill, you have to pay the bill with your account.
If you pay half of the bill or any remaining amount in a bill will carry over to the next month’s bill and so on. On that carried over bill the bank will charge you very high interest on the this is how banks make money.
However, On the other hand, if you clear your bill you can enjoy your next 40 to 45 days of interest-free this is the way when businesses are taking advantage of credit cards.
Yes, obviously banks take charge fees annually. And every withdrawal of payment.
For a business, such a type of plastic money is very important to run a business for a long time. your income depends on it.
If you use a credit card every month then your score will definitely improve and you can increase your limits of the transaction.
2) Do and Don’ts of Credit Card!
Credit cards as the name implies meant for spending money on credit. Credit cards are very helpful if you need to buy something but don’t have enough cash.
The catch here is a need. Credit cards are well defined in the post below by Daniel Palmer.
I am going to tell you the do’s and don’t of Credit Card:
Have one and only one credit card with a decent limit, that can be used only when there is a need to buy something and you don’t have sufficient cash.
The decent limit here means is the amount of money you are capable of repaying, without keeping your other things at stake.
Don’t buy anything that you don’t need.
Don’t have multiple credit cards. It is a very easy trap for you to lose money in the form of various charges if you don’t manage them wisely.
Don’t fall into the trap of reward points as they are hardly useful and people generally cannot keep track of it.
Go for credit cards that provide instant cashback so that you don’t have to remember it to use later on.
As per my experience it is very difficult to close the credit cards once you get it. There is absolutely zero transparency in the process should you choose to get out of it.
In the case of disputed transactions or duplicate transactions, the process is cumbersome for settling the transactions.
A piece of advice, use your debit card, that will help you keep track of your money, in the manner that you will spend only when you have it and not otherwise.
3) Advantage and Disadvantages of Credit Card
A credit card is the best option for you when you are traveling. The piece of the card helps you sometimes in difficulties. As well it has some advantages and disadvantages which we discuss now, are you ready to go great!
- If you are run out of payments then a it helps you until you do not cross the maximum limit of the card.
- The biggest benefit is you can do transactions in any currency anywhere in the world if the card is accepted.
- Therefore, the best benefit is Interest-free for 30-40 days depending on your bank.
- You can merchandise the redeem code, some banks offer loyalty programs to collect coins.
- The frequently flying persons can take advantage of credit cards and get special discounts at the lounge at the airport.
- Not only this, but you can also withdraw cash from ATMs.
- You get trapped in a high–interest rate of the debit card up to 30% per annum if you do not pay your full bill on time.
- The interest rate is counted from day one when you withdraw money from a debit card.
- In case you lost your debit card it’s a lengthy process of blocking the card. You have to call your respective banks and explain the whole incident with your proof.
- According to previous data, people are spending more than they earn, and usually, they got trapped in debit card high-interest rates.
- In my opinion, you have to use a debit card in an emergency or use it wisely to take benefit.
Now here are some benefits of credit cards.
3) Benefit of Credit Card
- The past track record defaults to date in their bank account only those are eligible for the credit cards.
- The greatest benefit is buying now and pays after 25 days the merchant banking discount given by service providers.
- The charges are the same whether you pay through credit card or the cash payment.
- You don’t need to carry heavy cash with you for shopping.
- Sometimes maintaining a credit card is a status symbol in your friend circle.
- No fear of threat or pickpocketing while traveling.
- Most of the bank provides you free insurance to a cardholder equal to your card score.
- If anyone misuses your card you can easily trace the culprit.
- In case of loss or misuse of a credit card, the owner does not have to pay any amount that the transaction made after the loss of card if you really lost your card.
- You can pay your bill through online transactions.
- You can get loans easily through credit cards like a personal loan.
so, there are so many advantages as we discuss.
A credit card is also your money you have to pay for it and on another hand, it is a trap if you misuse the credit card.
People are using sly money more than they earn. I suggest that please use carefully this is similar to mind is used in the right direction you get the benefit.
Past data showed that most people are unable to repay and they lost their properties.
So use it in a proper manner and if you really need it.
Now Please understand how to use it, half knowledge is always bad to use.
4) Credit Card and usage
Yes definitely is you are reading this then you are new to use a credit card and you have to understand the following things in a proper manner:
- so, use a credit card under the third quarter of your account balance limit. If your limit of credit card is 100 rupee you have to only use 75 rupees. If you use more than this it seems like you are at risk and you can’t pay. The credit score becomes low next time.
- If you want to achieve trust in the bank then pay before time.
- Avoid getting too many credit cards.
I just want to say use a credit card wisely. It’s a very powerful tool in your hand. You can be a bank corrupt because the interest rate is very high. The second thing is that remember you should have to repay it’s not free money the bank will take with you with interest or you can lose your property also.
Hope you understand to use it for business to take more benefit of credit cards. use the credit card and debit card to pay your mortgage.
so, you can also read Financial planning
Ans: Yes you can do anything financially with the piece of plastic.
Ans: With the help of a credit card you can do online shopping and also withdraw money from ATMs.
Ans: Its simple works like a loan you can borrow money with the bank and pay it on time so, you don’t have to pay interest on it.
Ans: if you pay the debt on time you do not need to pay interest, but if you do not pay your bills on time you have to pay heavy interest rate up to 25 to 30%
Ans: if, your credit card is declined the one most conman reason is that you don’t have enough balance to perches or pay.
Ans: The card which have annual charge less and credit score is high you should go for it.