Credit cards are resourceful when used diligently. But do you think you are good at investing and managing your credit card?
Well, it depends upon the kind of credit card you possess, going for a lifetime free credit card is the excellent choice as it does not have a yearly fee attached.
One should buy a credit card that suits their lifestyle. For instance, if you’re a regular shopper then opting for a credit card that favors bulk shopping and provides one with great discounts and deals will be appropriate. And if you are a travel enthusiast then going for a travel-friendly card will be best that provides travel discounts.
The entire idea of opting for a credit card is being free from the clutches of a cash confined world it is important to understand when to buy one and how to use it. For immediate cash requirements, credit cards come handy, on the other hand, the interest rates offered by credit cards are higher than that of Personal Loans. Also, when you withdraw some money from ATM with the help of a credit card, a processing fee of 2% is charged from the amount.
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 that 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.