10 things to know before getting a credit card Pre-face
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.
To know the how to do effect credit card on cibil score.
Therefore, certain criteria are set when buying a credit card.
What to know before getting a credit card?
In this article we can get idea’s 10 things to know before getting a credit card.
Contents
10 things to know before getting a credit card
In 2021 such as Many companies in the market offer credit cards to you.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.
So, lets began to know 10 things to know before getting a credit card.
Read this what to know before opening a credit card?
Credit card types
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.
Your Income
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.
Start to low credit limit
Credit card sellers are always going to benefit themselves.But 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 go on offer.
Important credit card rules
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.
Rules of interest
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.
Discount
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.
Credit card fees and other taxes
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.
If the bill is paid late
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.
Credit card control
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 cards affect your cibil
Credit card helps to increase cibil score as well as he decrease you’re cibil score.
Read our article on how credit cards work.
In Summary we have seen the 10 things to know before getting a credit card.
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