ADVANTAGES OF OWNING A CREDIT CARD
The little plastic money which is handy and instantly solves our crunch of money can be both blessings as well as lethal. Over the years, it has gained a lot of popularity among the crowd, considering the plethora of benefits that it poses. Whether it’s instant paying, loan facility or just the coolness factor that it adds, there has been a subsequent rise in the number of applicants who wish to own a credit card. But before you head on for applying for plastic money, it is always wise to have a good idea of how the card works and what are the possible advantages and disadvantages that it poses to you in the longer run.
Rate of interest charged annually
Understand that even though with a credit card the payment is paid in advance and can be repaid at a later date, however, it does attract a certain rate of interest. This is what is called an annual percentage rate of interest alias APR. This rate depends on which bank you are opting for a card and what is the type of card you deem to purchase. Paying the interest within the set window period can save you from paying extra.
Every credit card comes with an annual fee. The annual fee for your card will widely depend on your card. Based on whether if it is a primary or supplementary card, the annual fee will vary further. You can get them waived off by linking it to your utility bills. However, the criterion often depends on what is provided by your bank.
Credit cards award you cashback and reward points that are earned at the time of purchases.
Other Miscellaneous benefits
Cash withdrawal from ATM. The interest rate tends to be higher in this case.
Minimum repayment each month. Instead of paying the entire amount, you can make payment for a percentage of the amount. If you fail paying the minimum amount too, you will be levied with an additional fee for late payment.
Thus, study the entire pros and cons and head on to apply for credit cards.