You definitely know about credit card, debit card/ ATM are same as a plastic card but many people confused to differentiate them. First we must know what a credit card does. A credit card is actually let you borrow money in advance . Let’s make it more simple . If you have to pay somewhere and you don’t have cash or also not in our account ,that time if you have credit card and if you use it ,the bank will pay your money in place of you. But as I told you it is a borrowed money so you have to give it back , The condition is you have to return money to your bank in 45-50 days.
50 days is a maximum limit to return money.
What happened if you did not return on time?
What are the other demerits of credit card?
Why you should be more careful when having a card from your bank?
Is there any particular bank you should prefer?
All these questions have answers which are written below.
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1)unnecessary purchase
A credit card provides you money when you don’t have in your account. You can shop smart anywhere. Most of the shops and brands also give discount on credit card. So mostly people buy things not according to your need but according to their monthly expensive. Through this their credit card expense increase.
You can choose credit card according to your expense for example if you do online shopping then you can choose a credit card that gives you discount on online purchasing.
2) High interest rate
It seems like it mitigate your tension about money and expenditure but a thing you should know about this is when your payment is not paid in full by the due date , you have to pay them on high interest rate.
You may notice that whenever your mobile recharge reached below a minimum balance , A plethora of massages started showing in your phone but have you ever notice that massage of your credit card balance never be shown in your mobile. The company itself wants that you pay late not on time so they can get more profit by high interest rate.
3) There is no free EMI
Before taking prevails of credit card you are supposed to know disadvantages of this, if you want to keep yourself safe because every company that is giving your some privileges also make some rules for it.
Banks usually promise to their customer of free EMI on credit card of 0% interest but you should know that it also has some rules and regulation if you are failed to apply a single rule you will have to give charges not 5 or 10 % interest but as more as 20 % interest.
4) Annual fee for some credit card become expensive
There is no scarcity of credit cards in market of free annual fee. But mostly are basic variants. You should get a credit card that’s annual fee doesn’t affect your annual budget.
There are also some companies that provide you credit card in which a particular expense can be acquitted annually.
Most of the banks offer more than one credit card. Remember that you can never be eligible for keeping many credit cards in one time. You should choose credit card according to your eligibility and save yourself from future trouble.
Read also:- Loans guide for business
