Credit card :- You must have heard about a credit card, but do you know what a Credit card actually means?

How can you use the credit card wisely so that you can get the max benefit of using a credit card because if you will not use it accordingly, it could result as a trap for you.

Many of the new credit card users do not know that if you failed to pay the credit card bills on time, a heavy interest will be imposed on you.

So, alright if you are begginers, and do not know at least a ‘C’ of a credit card, we assure you after reading this detailed article, every thing related to credit card will be cleared for you.

Without any delay, lets start.

What is a credit card.

What is a Credit Card and how to use it?

Have you ever seen a debit card or any of the identity card? Credit card is just similar to a debit card. Debit cards are linked with bank account and we can withdraw the money whatever amount is there in our bank account.

It is a thin rectangular piece of metal or a plastic mainly issued by a financial institution/banks to users.It is not linked with any of the users account. But, there is a monthly limit which is decided by institution and that limited amount could be used by the users in a respective month.

It is also called plastic money. When the bill is generated from your credit card, after 21-25 days of it you will have to pay the credit card bill without any interest.

It is so simple to use, in short words :- you use the credit card limit amount and pay it later within 21-25 days. That’s all. But, but of you failed to pay it within this grace period of a credit card. Then what will happen?, will discuss it further in ‘disadvantages of a credit card’ segment.

Now, lets move to the next important point ‘ how to use a credit card’?

How to use a credit card?

Credit card is very simple to use. Most of the people use it for online transaction like shopping, ticket booking, bill payment etc. What if we wanna withdraw hard cash out of it?

Well, most of the banks discourage such practices because, if you will withdraw the hard cash, then ‘hard cash withdrawal fee’, you will have to pay. It could be up to 2.5% of your amount withdrawal and varies according to banks.

So, if you wanna get the most out of a credit card then you should use your credit card mostly for online transaction.

How to apply for a Credit card?

There are two ways you can apply for a credit card – either online mode or offline mode.

In online mode, most of the financial institution/banks allow to apply for credit cards through net banking. So, of you are a customer of any of bank that issues credit card, and if you have net banking of that bank. Simply, log in your net banking and there you will get an option for credit card apply online. They will ask you about your few of the documents and on the basis of your CIBIL score/ credit score and some of the other criterias, your application will be accepted.

In offline mode, you will have to visit the nearby branch of the bank from which you want to get a credit card. Contact the branch manager and they will guide you on how to apply for a credit card in offline mode.

Hope, up to this point everything is cleared to you.

Now, lets jump to the another important segment ‘advantages of a credit card’.

Advantages of using a Credit Card.

If you are using a credit card, you should know that what are the advantages of using a credit card. So that you can get the max of it. Here is some of the ‘top advantages of using a credit card‘.

1. Interest free money :- Credit card helps you to spend the credit card limited amount and pay it later without paying a single penny of interest. Yes, you heard it right, if you pay the bill within the grace period. Not a single cent will be asked as an interest. While, if you borrow some money from elsewhere, you will have to pay the interest.

2. Convenient :- Credit card helps you to do a transaction, whenever it is required and anywhere. If you have a credit card, you will not have to depend on anyone for money.

3. Reward point :- Whenever you will make a transaction using a credit card, you will get some reward point that can be redeemed and used during next transaction.

4.Variation:- If you are a keen of shopping, eating, travelling or anything else. You can choose your credit card according to it. Several institution issues credit card specially for travellers , and those who love shopping and many more.

Now, after the ‘advantages of a credit card‘ lets talk about some disadvantages of a credit card’.

Disadvantages of using a Credit Card.

The ‘main disadvantages of using a credit card‘ are:-

1. High interest rate :– As we have discussed above, What will happen if we failed to pay the bills during given time period?

Actually, if you failed to do so, a heavy interest rate will be imposed on that amount, that you had spent. Later on, you will have to pay that all.

2. Unnecessary spendings :- It is also a major disadvantage of using a credit card that we start spending unnecessarily. As credit card gives us advance money, and its human nature to spend the money when you have it in advance.

3. Security issues :- Unfortunetly, if you lost your credit card, or your credit card pin is known to anyone. Asap you should deactivate your credit card, otherwise you could get into a trap and your credit card could be misused.

Last line.

Hope, the basic understanding of a credit card, is almost cleared to you. Further, we are also going to publish a detailed journal regarding ‘various types of a credit card, and you can choose your credit card, and a lot of stuff’.

So, you stay tuned with this blog to never miss such informative blog post.

See you soon…

Have a great day ahead ❤️.

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