Useful Hints On Credit Cards
Credit Cards, unlike what many people out there think, are not meant to encourage a life of luxury.
Many people wrongly assume that owning a credit card gives you freedom to buy whatever you desire. While it is true that it gives you freedom, it is not the freedom to spend money recklessly. It is meant for you to pay for your purchases without using physical cash.
This does not assume that you are to paying for the good or services you bought. On the contrary, you are paying. The cost of the goods and services is billed to your credit card.
Unlike what happens to many people out there, owning a credit card is supposed to make you wiser financially. In other words, you will be able to control your spending and avoid credit card debts that many people often fall into as result of the misuse of credit cards borne out of their misconceptions of the card.
One of the things you must know regarding credit cards is cash limit. Every credit card has a limit. Once this limit is exceeded, every other thing you buy will be on credit and this means that you owe your credit card supplier. Many suppliers of credit cards out there often inform people of their cash limit so that they can control their spending.
In addition, every credit card has an APR, annual percentage rate. it is also known as credit card rate. This refers to the rate of interest that you must pay on the balance on you owe your credit card supplier. The higher the percentage on your credit card, the more you will pay in terms of debt.
Another thing you must know about credit cards is that it is often accompanied by monthly payments. You will be required to pay your credit card bills every month. If you default, the balance you owe will be charged on the percentage according to the APR agreement and you will end up paying more than you spend. It is highly recommended that you pay your bills every month in order to enjoy credit cards. Even though it is true you can own more than one credit card, you should be informed that defaulting in your monthly payment will result into huge debts for you.
Many people wrongly assume that owning a credit card gives you freedom to buy whatever you desire. While it is true that it gives you freedom, it is not the freedom to spend money recklessly. It is meant for you to pay for your purchases without using physical cash.
This does not assume that you are to paying for the good or services you bought. On the contrary, you are paying. The cost of the goods and services is billed to your credit card.
Unlike what happens to many people out there, owning a credit card is supposed to make you wiser financially. In other words, you will be able to control your spending and avoid credit card debts that many people often fall into as result of the misuse of credit cards borne out of their misconceptions of the card.
One of the things you must know regarding credit cards is cash limit. Every credit card has a limit. Once this limit is exceeded, every other thing you buy will be on credit and this means that you owe your credit card supplier. Many suppliers of credit cards out there often inform people of their cash limit so that they can control their spending.
In addition, every credit card has an APR, annual percentage rate. it is also known as credit card rate. This refers to the rate of interest that you must pay on the balance on you owe your credit card supplier. The higher the percentage on your credit card, the more you will pay in terms of debt.
Another thing you must know about credit cards is that it is often accompanied by monthly payments. You will be required to pay your credit card bills every month. If you default, the balance you owe will be charged on the percentage according to the APR agreement and you will end up paying more than you spend. It is highly recommended that you pay your bills every month in order to enjoy credit cards. Even though it is true you can own more than one credit card, you should be informed that defaulting in your monthly payment will result into huge debts for you.
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posted by Credit Counseling at
8:28 AM
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