Important information about credit cards

What is a credit card?
It is commonly known as plastic money which is used instead of cash. A credit card is used to buy any product on the market on credit. It has 16 digits no., CVV no. and a single pin no. which must be kept secret by the user.

It has replaced banknotes and has found a permanent place in our wallets; however, it is an unsolved mystery for many and therefore generates hundreds of complaints about excessive charges as it is not well understood even though banks provide users with all the necessary information in the form of “terms and conditions” that come with your card kit.

Users often have mixed opinions about a credit card. Some users are very satisfied with these, while others are so irritated that they strictly deny having one in the future. We are going to discuss here on the same topic.

Generally, a credit card comes with benefits and some fees that aren’t really hidden. Like different cards, they come with different annual fees, late fees, and other charges. But when a person applies for a card, he often only sees the benefits and not other rules and regulations. Somewhere, there is also the seller’s fault, since he cannot properly guide the customer. Which results in negative feedback from him. So is there any solution to this problem? Yes, of course, a little attention can save you from unnecessary charges. What you need to do now is read these important tips to follow to play safe with credit cards.

Anyone requesting it should be aware of these facts:

– There is a due date mentioned in the invoice statement. You must pay your bill before this due date to avoid late fees. All banks have different charges for late payments like 750 rupees for a month.

– In the invoice statement, two amounts are mentioned, namely the minimum amount due and the total amount due. To avoid interest on your next bill, be sure to pay the full amount due instead of the minimum amount due. Paying the minimum amount due will give you a low credit score and unnecessary charges on your bill. These charges vary with the bank and can be 3-4%

– All cards have a fixed billing cycle and payment date. Therefore, do not forget to manage your expenses to pay the bill on time.

– Always check your account statement. And if you think it needs to be corrected, do so within 60 days.

– Always remember your credit card number. In case it gets lost, it is easy for you to quickly report it to the bank. Plus, it can be easy to shop online because you won’t always have to pull it out. However, at the time of purchase you also need CVV no. and expiration date. But it is good to remember your credit card number.

– Consult the annual charges and other bank commissions when requesting a credit card. All banks have different fees and charges that you should check. This will help you learn about your credit card and upcoming charges. Therefore, you would not be surprised by these fees and charges.

– Credit cards come with certain points and a rewards program. These points are converted into the value like in some cases 2 points = Rs.1 while in some cases it is like 4 points = Rs.1. You need to know about these reward points to redeem them later.

– Check that it is your bank that grants you cashback with purchases. Refund means that the refund amount your card is responsible for will be credited back in cash to your account at the time of the billing cycle. The value of the refund is debited from your account on the statement. This is a nice feature and will help you save every time you shop. For this, you need to check what your credit card offers.

– Do not use the full limit of your credit card, as it may cause a loss in your credit score. To maintain a healthy credit score, you don’t need to spend more than 50% of your credit limit.

– Do not use your card to pay other credit card bills or any other debt. It will lead to poor financial health. Instead, you can apply for the personal loan that is readily available at a very low rate of interest.