Have you ever felt the need to purchase a good or service to realize your fund is insufficient? Credit cards serve as a means to tackle that issue. The bank issues credit cards to enable purchasing items by borrowing funds.
Credit cards are vastly efficient in offering a discount, traveling points, even flat rates, and tiered rates, among other things. The advantage of credit cards cannot be overemphasized, but it is not a source of “free money” as these amounts of money borrowed are to be returned based on pre-decided agreements. Credit cards are less strenuous and favorable than loans, among other things. Credit use always reflects a negative or positive history that determines the future use of credit cards and credit card scores.
Credit card options
Credit cards come in different forms, and there are many options uniquely made to fit the likes, needs, and wants of the owners. Credit card options are accessed carefully to decide which would suit the owner. Some of the most popular credit card types offered include standard, premium, reward, balance transfer, and secured.
- Standard credit cards are good for balance transfers and provide cash advances, among other things. Standard cards require no annual fee and are easy to obtain.
- Premium cards are the best to use, especially if paid back in full. They aid with services like airports, special events. They have higher annual fees.
- Reward cards give back rewards inform on points cash backs, among other things. They are suitable for people who purchase a lot or frequent shoppers.
- Balance transfer cards have low industry rates. They pay off all the previous credit debts and combine them into one credit card to which debt is paid.
- Secured credit cards are popular and mostly require collateral. It has no limit, but unpaid balances are not to be rolled over into another month. It allows the payment of credit for 6-18months.
Conclusion
Credit cards, along with their flashy advantages, are a two-edged sword. They can cause great harm to your finances if debts are not paid on time. With proper spending habits, credit cards will keep you out of tough spots when needed.