About Managing Your Credit Card
Credit Cards can prove to be a helpful resource when you make a profit out of it. But do you think you are good at managing your credit card?
Well, it only depends on the type of card you have, opting for a lifetime free credit card is best as it does not have a yearly fee attached. You should buy a card that matches your lifestyle. If you are the one who likes shopping, then preferring a card that provides lots of offers and discounts will be the best decision. If you like travelling, then opt for a card that offers you travel friendly offers.
The whole idea of having a credit card is to provide cashless convenience, and it is necessary to decide that when, why and how to use it. Although these are helpful when a person needs funds quickly to meet immediate requirements, but the interest rates offered on these are higher as compared to Personal Loans. Also, when you withdraw some money from ATM with the help of credit card, then a processing fee of around 2 per cent is charged.
These cards also provide the facility of equated monthly installments to pay the loan you take against the credit limit. It usually takes 1 or 2 days for approval of this loan and even be applied on the phone without any documentation. But it will be given at High Interest Rates as compared to other loans. Cards which are offered at low interest rates come with no EMI facility for repayment.
Credit Card is a good way for meeting short term financial requirements. But it can cost you more if you fail to pay the amount and make purchases out of the credit limit. Therefore, it is suggested to use the card sensibly to stay away from penalties.