Useful Hints On Credit Cards
Unknown to so many people out there, credit cards are not designed 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 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.
You must realize that all credit cards have cash limit. In other words, anything you buy after exceeding your cash limit is bought on credit. This means that you owe your credit card supplier money. Many credit card holders are usually informed of this limit by suppliers in order to help them avoid uncontrolled spending which leads to 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 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 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.
You must realize that all credit cards have cash limit. In other words, anything you buy after exceeding your cash limit is bought on credit. This means that you owe your credit card supplier money. Many credit card holders are usually informed of this limit by suppliers in order to help them avoid uncontrolled spending which leads to 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.
About the Author:
It matters not how much you think you are aware regarding Credit Cards information such as information about Gold Credit Card , or Best Business Credit Card , see the author's website to be amazed at truly revealing information http://www.freecreditcardsinformation.com
posted by Debt Consolidation Loan at
8:27 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home