What is a Credit Card?Written by John Mussi
A credit card allows you to buy things even though you might not have money to pay for it right away. The company that gave you card lets you spend up to an agreed sum and then makes additional money available to you as you pay off what you've spent. You must pay at least a minimum amount by due date, generally once every month. You will pay a finance charge or interest on any amount you do not pay by due date. Today our entire financial system relies on credit. Credit cards can help to make your life that little bit easier- you can use it to pay for goods or services, either over phone, online or over counter. Credit cards can enable you to have that little extra spending power when and where you need it. In addition to paying for purchases you can also use your credit cards in order to withdraw cash from a cash machine, not only in this country but all over world. It is increasingly difficult to operate in modern economy without a credit card. Credit cards allow people to manage emergencies, to shop conveniently in High Street, by telephone or over internet and are useful when travelling abroad. With each credit card you will have a limit to amount of money that you can spend on it. This is known as a ‘credit limit'. You can withdraw money and pay for goods and services as much as you want up to your credit limit, effectively borrowing capital from your credit card provider. Every month you will receive a credit card statement that will detail both your balance (the amount of money you have either withdrawn or spent) and any interest that has accrued upon it. You can then either pay off full amount or make minimum payment.
| | Credit Card TipsWritten by John Mussi
Here are some useful credit card tips for you to consider before applying for a credit card. Before applying for a credit card, you should decide why you want one, and make sure you can use it wisely. More and more people use plastic as their main means of paying for goods and services. Today our entire financial system relies on credit. Credit cards can help to make your life that little bit easier- you can use it to pay for goods or services, either over phone, online or over counter. A credit card makes it easy to buy something now and pay for it later. It's much safer to use a credit card than to carry around cash. If you lose your credit card, you can ask your credit card company to cancel your card, and no one else can use it. But if you lose cash, your money is lost. Credit cards are also convenient. You can use them to make hotel, car rental and other reservations. You can buy items over phone or online. You can also use credit cards for emergencies, like unexpected car repairs, when you don't have cash to cover expenses.
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