Unlike good olden days, modern man is not interested in carrying loads of money in his pocket. He is rather looking for convenient and hassle free methods to make payments. This has resulted in designing plastic money also known as credit card. Besides offering convenience this is one of the safest and easiest methods of carrying money.
With the growing popularity and usage of credit cards, different kinds of credit cards are being offered by banks. Now choosing credit card that matches your requirements is one of the toughest challenges for customers.
Before choosing credit card, you need to be aware of the various kinds of cards prevailing.
•Standard credit card: Standard credit card is one of the most common kinds of credit cards available in the market. Interest rate and other charges get accumulated on this card only once you carry forward your due amount beyond the grace period.
•Secured credit card: In case you would like to avail services of these cards, you would be required to deposit some amount in your account against your credit limit. However, the fee charged in this kind of card is more in comparison to a standard credit card.
•Balance transfer credit card: If you want to minimise your debt burden, it is advisable to go for a balance transfer credit card. Before issuing this card, the issuing companies take over your existing dues on other cards. The main advantage of choosing this is its low interest charges.
•Reward credit cards: Depending upon your level of usage, free gifts are issues to the user. While choosing this card you need to check out the returns you would enjoy in comparison to the cost you incur in holding the card.
•Student cards: As the name suggests, these cards are issued to students who do not hold any previous credit history.
There are no doubts several benefits associated with using credit cards. However, users should also bear in mind their repayment ability before using these cards. In case you have monthly budget, figure out how much you can afford to pay off credit card bill and use your card accordingly. This would help in preventing long standing dues on your card.
When it comes to payment, pay off credit card bills is as important as choosing credit card. Bills if unpaid for long periods of time would incur huge interest and also tarnish your credibility in the market. Remember credit card companies are not lending you money just like that. They are into a business and are sure to collect huge amounts of money from you in the form of interest and other charges if you do not make prompt payments.
Never exceed your limits and if you fear this then stop using your card. Yes, you have heard me right. Block your cards if you do not want to over use them. Another thing that can help avoid from being penalised by credit card companies is make payments within the grace period. These facts if borne in mind can help you enjoy the benefits of credit cards.
Author Resource:
Jim Johnson is the author of this article on Payoff Credit Card .
Find more information about Choosing Credit Card here.
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