Credit Card & It’s Important
A credit card is a transactional card that enables the holder to make purchases of goods and services or withdraw advance cash on credit .It is issued by banks and financial institutions to bring convenience of payment. Credit cards act as a micro loan tool where the individual makes purchases under the conditions of paying off the same within a specific time period. There is no interest payouts if the due amount is paid within a specific time (interest –free period).
A custom borrowing limit is pre-set by the issuer and this determines the maximum amount of credit a user can spend from a credit card. Credit card brings users the opportunity to save big through discounts and deals, making it a popular choice.
Don’t be put by the term ‘Credit’. If used wisely, credit cards are a convenient tool to manage your short-term financial needs. A credit card is a financial tool that lets you borrow a certain sum of money and repay it back later in instalments.
An interest is charged only if the credit amount is not repaid within the grace period which usually ranges between 20 to 60 days. Whether you want to make online payments or swipe the card at a restaurant, everything is possible with a credit card. Besides allowing you to borrow funds conveniently , credit cards also offer a host of benefits such as reward points , cash backs, frequent flyer miles, credit score etc.
A credit card is certainly a must- have item in your wallet