Credit card : Easy to way understand credit card & their advantage - disadvantage .

What is Credit card ? 

A credit card is merely a payment card issued to you by a credit card company. Credit cards are commonly utilized to pay over the phone, for products and services, normally at stores or via post. 

Credit card

They're separate from debit cards, which cover only from the cardholder's credit or debit card, to the individual cardholder. 

As well as using it to pay over the phone they may also be used to purchase items online or make reservations.

Advantages of credit card 

One of the most common advantages of having a card is you won't have to carry large amounts of money. 

This usually means that you won't need to worry about losing money when you are out and about in people. 

However this benefit is offset by the fact that credit businesses charge a tiny annual fee. 

Annual charge on credit card 

The fee is calculated based on the amount of unused credit you might have. Therefore, the more expensive your card the higher your yearly fee.

Disadvantages of credit card 

Among the typical disadvantages of a charge card is they are difficult to keep track of. 

If you don't pay your bill on time then it's reported to credit bureaus, which will lead to a much bigger drop in your credit score.

This can make it even more challenging for you to borrow cash for mortgages or other kinds of charge. In addition, it can make it more difficult for you to rent an apartment or to purchase a house.

Additional drawback of credit cards : 

A drawback of a card additionally entails fees, both monthly and annual.

These fees can add up to some substantial amount of money so that you have to appear carefully before you decide whether or not to have a card. 

You have to ask yourself if you really need all of the added advantages. Lots of people get a card because it seems like a good concept but soon learn that they cannot live without it and they end up paying a lot more than they need to.

A credit card may seem like a great benefit, but there's one major disadvantage. This is the cost of the APR...   

What is APR in banking industry ? 

The APR is the interest charged on your outstanding balance. This might be the drawback of having a card. 

You have to understand how interest rates work and compare them with the APRs of credit cards which have lower interest rates.

 A lot of men and women do not know that if you use a credit card you're charged interest that adds to your already existing debt.

Cheif disadvantage of credit card :

One of the chief disadvantages of a credit card is that lots of men and women get into trouble. They tend to charge a good deal of money and run up big balances and their credit score sinks.

This makes it very hard to acquire a loan for a home or a vehicle. To avoid these kinds of problems, it'd be advisable for someone to not get a credit card.

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