Practical Information On Credit Cards
Credit Cards, unlike what many people out there think, are not meant 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 assume that you are to paying for the good or services you bought. On the contrary, you are paying. The cost of the goods and services is billed to your credit card.
A credit card is supposed to make you wiser with your financial decisions. Once you really understand what credit card is and its uses, you won't have problem making wise decisions when you want to spend. You will be able to control your spending habits and consequently avoid credit card debts.
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.
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 about credit cards is that it is often accompanied by monthly payments. You will be required to pay your credit card bills every month. If you default, the balance you owe will be charged on the percentage according to the APR agreement and you will end up paying more than you spend. It is highly recommended that you pay your bills every month in order to enjoy credit cards. Even though it is true you can own more than one credit card, you should be informed that defaulting in your monthly payment will result into huge debts for you.
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 assume that you are to paying for the good or services you bought. On the contrary, you are paying. The cost of the goods and services is billed to your credit card.
A credit card is supposed to make you wiser with your financial decisions. Once you really understand what credit card is and its uses, you won't have problem making wise decisions when you want to spend. You will be able to control your spending habits and consequently avoid credit card debts.
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.
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 about credit cards is that it is often accompanied by monthly payments. You will be required to pay your credit card bills every month. If you default, the balance you owe will be charged on the percentage according to the APR agreement and you will end up paying more than you spend. It is highly recommended that you pay your bills every month in order to enjoy credit cards. Even though it is true you can own more than one credit card, you should be informed that defaulting in your monthly payment will result into huge debts for you.
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posted by Credit Counseling at
8:11 AM
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