Basic Information On Credit Cards
Unknown to so many people out there, credit cards are not designed to encourage a life of luxury.
Many people are wrong about their conception of credit cards. They think that it gives them liberty to spend recklessly. The truth is that credit cards are designed to help you buy whatever you want without the use of physical cash. It is not a ticket to be reckless in your spending.
This does not connote that you are not paying for your purchases. Actually, you do. The payment for the goods or services you bought is usually billed to your credit card.
Owning a credit card is supposed to make you wiser with financial decision. Once you really grasp the reason for credit cards, you will be able to nip the bud all wrong desire to over step your financial boundaries.
Contrary to what people think, every credit card has cash limit. Whatever you bought after exceeding your limit is often bought on credit. This means that you owe your credit card suppliers some money that must be paid back. Normally, suppliers inform credit card holders about this limit so as to help them control their spending and avoid unnecessary debts.
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 be aware of regarding credit cards is the monthly payments. Your credit card supplier requires you to pay your bills monthly and promptly in order to avoid debts. If you fail to pay the monthly bill, the balance that you owe will be charged on the percentage according to the APR agreement and you will end up with lots of debts. Hence, it is highly advisable for you to pay your credit card bills promptly. It is quite possible for you to own more than one credit card but you have to realize that you will be piling up huge debts if you fail to pay the required monthly bills.
Many people are wrong about their conception of credit cards. They think that it gives them liberty to spend recklessly. The truth is that credit cards are designed to help you buy whatever you want without the use of physical cash. It is not a ticket to be reckless in your spending.
This does not connote that you are not paying for your purchases. Actually, you do. The payment for the goods or services you bought is usually billed to your credit card.
Owning a credit card is supposed to make you wiser with financial decision. Once you really grasp the reason for credit cards, you will be able to nip the bud all wrong desire to over step your financial boundaries.
Contrary to what people think, every credit card has cash limit. Whatever you bought after exceeding your limit is often bought on credit. This means that you owe your credit card suppliers some money that must be paid back. Normally, suppliers inform credit card holders about this limit so as to help them control their spending and avoid unnecessary debts.
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 be aware of regarding credit cards is the monthly payments. Your credit card supplier requires you to pay your bills monthly and promptly in order to avoid debts. If you fail to pay the monthly bill, the balance that you owe will be charged on the percentage according to the APR agreement and you will end up with lots of debts. Hence, it is highly advisable for you to pay your credit card bills promptly. It is quite possible for you to own more than one credit card but you have to realize that you will be piling up huge debts if you fail to pay the required monthly bills.
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posted by Credit Counseling at
8:09 AM
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