Five Credit Cards Facts to Help You Save Money

Five Credit Cards Facts to Help You Save Money

It is difficult to imagine people’s lives without plastic cards. This is a convenient way of payment as you can pay with it for any goods or service without any delay. The development of Internet technologies allowed not only to buy or order something using a plastic, but also to take the credit for personal needs. However, if you are using credit cards, it is important to be careful as not always the terms of them are beneficial to customers.

Useful Facts

Knowing certain facts about bank products, users will be able to manage their funds more efficiently:

  1. Annual Maintenance

Credit cards are considered to be the most expensive to maintain, therefore for the banks this is an excellent to generate profits. Setting a high interest on loans as well as large commission rates for various operations, the use of a credit card is sometimes very expensive.

  1. Cashback

Some financial institutions offer customers a cashback for the operations performed by the credit card with the purpose of attracting the attention of customers. Sometimes they return up to 20% of the purchase amount. However, it is necessary to know that a certain fee can be withheld from the amount that you are returned after paying for purchases.

Cashback is a monetary bonus, which the bank gives to the cardholder, which means that it is your personal income. In general, if you often pay with a cashback card in certain shopping places, you can save a lot on purchases. In that way, it is relevant to pay an increased attention to the places with such offer.

  1. Credit Limit

Today, many financial institutions offer clients to open lines of credit with cards. Depending on the regularity and level of income of the credit user, a certain amount of the loan is issued. It is important to repay the debt on time if you use a credit card. In case of delay in one day, the fines would be charged. Also, you should pay to the last cent because if you still have even a couple of dollars debt, it will be increased with a penalty monthly.

  1. Cash Withdrawal

It is usually unprofitable to withdraw cash from a credit card because the bank often takes a large commission for this option, and when you simply transfer funds to a debit card. Just take into account that only for withdrawing money from the ATM from your account would be also withdrawn from 2.5 to 5% of the balance of the loan.

  1. Grace Period of Crediting

The use of credit on the card can be free. It is only necessary to return the entire amount of debt during the grace period and interest on the loan would not be allocated. However, it is important not to withdraw cash from the card during this period.

One Reply to “Five Credit Cards Facts to Help You Save Money”

Leave a Reply

Your email address will not be published. Required fields are marked *