What is a Credit Card?
It is commonly known as plastic money used in place of the cash. A credit card is used to buy any product from the market on credit. It has 16-digit no., CVV no. and a unique pin number that must be kept secret by the user.
It has replaced currency holdings and has found a permanent place in our wallets, but it is an unsolved mystery for many and thus resulted in hundreds of complaints about excess fees, fees as it is poorly understood even though banks provide users with all the necessary information in form of a printed “terms and conditions” that comes with their card sets.
Users usually have mixed reviews about a credit card. Some users are very happy with these, while others are so annoyed that they strictly deny having one in the future. We will discuss here on the same topic.
Generally, a credit card comes with benefits and some fees that are not actually hidden. Just as different cards come with different annual fees, late payment costs and other charges. However, when a person applies for a card, he / she often sees only the benefits and not other rules and regulations. Somewhere, there is also a fault with a sales person as he is unable to guide the customer properly. Which results in his negative feedback. So is there any solution to this problem? Yes of course, a little attention can save you from unnecessary charges. What you need to do now is read these important tips you need to follow to play safely with your credit cards.
Every person applying for it must be aware of these facts:
– There is a due date mentioned in the bill account. You must pay your bill before this due date to avoid late fees. All banks have different late fees like Rs. 750 for a month.
– Two bills are mentioned in the bill of accounts, namely Minimum due and Total due. To avoid interest on your next bill, be sure to pay the total amount due instead of the smallest amount due. If you pay a minimum amount, you get a low credibility score and unnecessary fees on your bill. These fees vary with the bank and can be 3-4%
– All cards have a fixed billing cycle and payment date. So don’t forget to manage your expenses to pay the bill on time.
– Always check your invoice declaration. And if you think it needs fixing, do it within 60 days.
– Always remember your credit card number. In case it is lost, it is easy for you to report it to the bank quickly. It can also be easy to shop online because you do not always have to take it out. However, at the time of purchase, you also need CVV no. and expiration date. But it’s good to remember your credit card number.
– Check the bank’s annual fees and other fees while applying for a credit card. All banks have different fees and fees that you need to check. This will help you know about your credit card and upcoming charges. So that you would not be surprised by these fees and charges.
– Credit cards come with certain points and rewards program. These points are converted to the value as in some cases 2 points = Rs.1, while in some it is like 4 points = Rs.1. You need to know about these reward points to redeem later.
– Make sure it’s your bank that gives you cashback with shopping. Cashback means that the amount of cashback for which your card is responsible receives the cash back into your account at the time of billing. The value of the cashback is debited to your account in the checking account. This is a great feature and helps you save every time your store. For this, check what offer your credit card offers.
– Do not use the full limit on your credit card as it may cause a loss to your credit score. To maintain a healthy eligibility score, spend up to 50% of your credit limit.
– Don’t use your card to pay bills on another credit card or other debt. It will lead to poor financial health. Instead, you can apply for the personal loan that can easily be obtained at a very low interest rate.