What was the first experience of yours after you know about money?
I guess the little piggy bank was your deposit criteria. Our parents teach us the common advantage of saving money more and more. Now there is a curiosity that why we need savings. Well, as there are a lot of ups and downs in the financial structures, savings can be more effective.
A credit card is a plastic card with a chip or a magnetic stripe and a relief number. It is issued by a financial institution authorizing its holder to make payments with said card by submitting it together with its cedula and signature.
In reality, the bank makes cash payments at the time the purchase is made by the customer, so the customer must repay the money lent. Credit card users have a maximum amount that they can buy with their credit card, however, they are not required to pay immediately the amount they have charged to their card, but is offered a financing term without interest To make at least the minimum monthly payment.
Misconception about credit card often hides the outstanding good effect of using it. In this article you are going to know about those secrets. Those topics which can give you further a better experience of credit card.
Having credit cards can generate multiple benefits if used correctly.
Read below, what are the main advantages of having this financial instrument:
-Function to continue building the credit history, very important for future bank loans.
-In the outside are indispensable. Many times they are required to rent vehicles, obtain cash immediately and to have insurance while staying in that country.
-They need to be necessary when making currency changes in countries without exchange control, since in the exchange houses the margin for each currency always has a significant amount of money left.
– They are ideal for keeping accounts, because you can easily check the list of movements in the bank to see what has been spent money, something we can not do if we have custom pay cash.
-The payment by credit card provides a security that is lost when you pay in cash. If something goes wrong complaints or complaints are always simpler and do not directly affect your money.
-They also have a fraud protection insurance, thanks to which we can recover our money if someone has stolen the card or made an illegal use of it on the Internet.
-Paying on credit can save you from a hardship in case of emergency. The important thing is to be clear that it is an emergency. And for this we must be quite clear that a financial emergency is always an unforeseen that must be done in a vital way.
Deal with the fees
Every bank charges a certain amount of fee while offering credit cards to its clients. If you have a good state of mind, then you can handle this fee in a fair way. As for now, the companies cannot but has to maintain a good customer. When you can convince them that you will dump the card, they will settle a long term deal with you about this. On the other hand, there is a slight chance of making the whole process smoother. If you can manage a good credit score, then the companies will allow you to use the card without any hidden or annual charges.
The deadline of repaying the credit is really crucial. So, there is a very common and universal truth about this particular problem. The bank will start to charge even a higher rate on your due credit. To get rid of this, you should pay the bills at the given time. As long as you are committed with your credit, they are not going to file any bad credit report against you. In another view, the relationship status with the company will get a big bash after you take this initiative.
Cut the penalty
When you can acquire a good credit report for yourself, you can easily get rid of one or two penalty payment. For example, if you cross the deadline of repaying the installment, just call the credit card company for cutting the late fees off. They will check your previous transaction history and report. After observing a satisfying credit score, they mostly pardon the extra late charge. This secret of credit card is beneficiary for you as well as for your family members.
As credit cards have been the alternative of banks, try to make the best use of this thing.
Acquiring a credit card can be an excellent idea that greatly favors your economy. Do not be afraid of the credits, especially if you are careful with the way you handle it.
Perhaps the main disadvantage is the payment of an annual fee for the pure fact of having the service, which usually rounds at $ 500.00 In addition to the total annual cost (CAT) you should compare between several cards and stay with a very low .
If you compare between different cards, look for the one that best suits your spending expectations. But beware of cards that do not charge an annual fee, since your CAT is very high.
If you’ve never had a credit card …
You can request one at any bank (even if you are not a customer). You will usually be asked for, identification, proof of address and proof of income.
If your application is not accepted, try in department stores, where the process is faster and easier. Then reapply in your bank and you will find it easier to get.
Know your statement
The bank or shop should send you to your address, a monthly statement where basically it is indicated:
The purchases you have made
The balance of your debt and the payments (payments) you have made
Your credit limit and available credit
The minimum amount required as payment
The term you have to settle the debt
The interest or commissions that have been generated
Remember that your card is an assistant in the management of your finances and that ideally you liquidate your debts soon. With this your credit will remain healthy and you will be able to obtain more and better credits in the future.