Useful Hints On Credit Cards
Contrary to what most people think of credit cards, they are not meant to encourage extravagant lifestyle.
Many people wrongly see credit cards as ticket to unlimited financial freedom. In other words, they think that they can become reckless in their spending. Actually, credit cards are designed to help you make your purchases without the use of physical cash. In other words, it is meant to help you and not destroy you financially.
This does not mean that you are not paying for your purchase. In fact you do, but the cost of your purchase 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.
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.
Furthermore, you must be aware that every credit card has an APR. APR stands for annual percentage rate or credit card rate. This is the rate of interest that you will have to pay on any balance that you owe your credit card supplier. If the rate is high, it means that you will pay more in terms of debts.
Another thing you must know is that every credit card supplier expects you to pay the required monthly credit card bills. Once you fail to pay this bill, the balance that you owe the supplier will be charged on the percentage according to the APR agreement and you will have lots of debts to contend with. This is why it is highly suggested that you pay your credit card bills promptly every month. It may sound as a good idea to have more than one credit card but you need to realize that you will end up with huge debts if you are not able to pay the required monthly credit card bills.
Many people wrongly see credit cards as ticket to unlimited financial freedom. In other words, they think that they can become reckless in their spending. Actually, credit cards are designed to help you make your purchases without the use of physical cash. In other words, it is meant to help you and not destroy you financially.
This does not mean that you are not paying for your purchase. In fact you do, but the cost of your purchase 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.
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.
Furthermore, you must be aware that every credit card has an APR. APR stands for annual percentage rate or credit card rate. This is the rate of interest that you will have to pay on any balance that you owe your credit card supplier. If the rate is high, it means that you will pay more in terms of debts.
Another thing you must know is that every credit card supplier expects you to pay the required monthly credit card bills. Once you fail to pay this bill, the balance that you owe the supplier will be charged on the percentage according to the APR agreement and you will have lots of debts to contend with. This is why it is highly suggested that you pay your credit card bills promptly every month. It may sound as a good idea to have more than one credit card but you need to realize that you will end up with huge debts if you are not able to pay the required monthly credit card bills.
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posted by Debt Consolidation Loan at
8:36 AM
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