You should be aware of when getting a credit card – dear friends, we all know the benefits of credit cards.The topic of finance came up, that’s where the subject of cibil score comes in. credit card Makes positive or negative changes to your cibil score.
Therefore, certain criteria are set when buying a credit card. What to know before getting a credit card?
In this article I will give you information about to you should be aware of when getting a credit card.
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Table of Contents
You should be aware of when getting a credit card
- How to choose a credit card for the first time ?
- Aware income before getting credit card
- Get a low limit credit card
- You should know credit card rules and regulations
- Understanding how credit card interest works ?
- Credit card discount offers
- Are credit card payments tax deductible ?
- What happens if credit card bill is not paid on time ?
- Best way to manage credit card
- Frequently asked questions (faq)
You should be aware of when getting a credit card
Now a days such as many companies in the market offer credit cards to customers, using it we can do more with online shopping.
Credit cards serve as a tool to boost your finance needs and if you choose the wrong credit card it means suitable to your financial capital, you should lose money.
How to choose a credit card for the first time ?
It is a very important term to choose a suitable credit card it mean the credit card choose by you is never higher than your monthly budget.
Also the low credit limit card have a low annual charges. The advantage of this is that it saves your money from being wasted for no reason.
Aware income before getting credit card
This term play important role in life.Your expenses should not exceed your earnings, This is the first rule of finance planning.
Mention your income should be real when you buy a credit card.There will not be much difficulty in repaying.
Get a low limit credit card
Credit card sellers are always going to benefit themselves, b ut credit card buyers need to analyze this properly.
What is the monthly income and expenses ? With the right balance, it is wise to apply for a credit card.
So again we say to understand your expenses and income then decide your credit card limit. don’t react credit card offer.
You should know credit card rules and regulations
It is important to know the rules of credit card usage. you should know about the credit card APR range, annual applicable fees, how to perform rewards, also other important details.
Understanding how credit card interest works ?
If you pay your bill in the first part of the month, the interest rate does not apply. And if you miss the monthly bill, you have to pay interest rate
So you need to know what the interest is apply on per month. Annual interest is compound interest.
Credit card discount offers
The grace period is the period during which the issuer charges no interest on the purchase if you complete the new balance and pay before the payment due date.
The extended period starts from the end of the billing cycle to the next payment due date.
If you lose the extended period by not paying your balance in full before the due date, you will be charged interest on the unpaid balance.
Are credit card payments tax deductible ?
Information and doubts about credit card activation, annual and monthly charges, transfer fees, foreign transaction fees, over limited charges need to be resolved. This way all types of taxes and charges are expected to be known.
What happens if credit card bill is not paid on time ?
You need to be aware of the fees that can be paid later than the alleged due date of your balance. Not only will you be charged extra if you pay late, but creditors can report your late payments to the credit bureau, which can damage your credit history and lower your credit score.
Best way to manage credit card
It is important to check how much you are spending regardless of your credit limit. Credit utilization ratios also affect your overall credit health so a high utilization ratio may not be considered good even if your repayment history is correct.
If you use more than 30-40% of your card availability, your credit score will drop as you run the risk of losing your card balance. Credit card affect cibil score. credit card helps to increase cibil score as well as he decrease you’re cibil score.
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Frequently asked questions (faq)
Which card is best visa or mastercard or rupay ?
It doesn’t matter which credit card (visa or mastercard or rupay) you use. They are equally secure and offer similar benefits. While VISA has a slightly higher market share and greater amount of transactions worldwide, Rupay and MasterCard are equally well-accepted by merchants.
Which country has most credit card users ?
The United States country has most credit card users.