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Use your credit card responsibly

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With technology being introduced in the banking sector, people are greatly benefited. Usage of cards for transactions saves time and the risk of handling hard cash. With the idea of decreasing long queues in banks and to reduce the burden on the banking staff, as well as customers cards like debit cards and credit cards, have been introduced into the banking sector. These cards help people transact directly without going to the bank to withdraw hard cash. To get a credit card one must pass kreditkortstest.se

Types of cards and their benefits

There are two types of cards used for the transaction- Debit Card and Credit Card.A debit card is one which allows the account holders to use the cash which is present in a savings account, but a credit card is a card with which the account holder can use extra amount which is not actually in his statement. The account holder must pay service charges along with the actual amount used on a monthly basis. The service charges differ from bank to bank,but however, all credit cards have specific additional costs.

 

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With credit cards, the account holder can borrow money from the bank which has issued the credit card. At the end of the month, the cardholder must pay the amount which he has borrowed along with the charges for the amount he has acquired. A credit card can be used for all regular transactions like paying bills, purchasing groceries, online shopping,jewelry shops and much more. One more added advantage of using credit cards is that the cardholders have opportunities to build credit to earn reward points and get cash back for certain transactions.

Borrowing money with credit cards is just like a short-term loan.You need to pay back the amount that you have acquired with interest rate calculated on it.The amount of interest or the interest rate vary from card to card and also depends on factors such as creditworthiness and payment history of the cardholder. If the person maintains a good payment history by making on-time payments, then the benefits to the account holders are more.

Credit cards also have a Credit line that is, the maximum amount of credit that can be taken for a month. This again depends on factors such as the person’s credit history and total income.

One has to use his credit cards in inadequately planned manner so that they can earn better rewards and match their emergency or unplanned expenses. Using a credit card responsibly and maintaining a good payment history helps the user to build credits in his badge. Making purchases with credit cards gives the user rewards such as cash back, discount on purchases.Credit cards are highly beneficial when traveling. One can book hotels or rental car using their credit cards

The best thing with a credit card is they are not directly linked to the user’s savings account. This highly reduces the risk of card theft. While using a debit card a person is always worried about the card safety, as the card is stolen or lost can be misused by the third person,but this is not possible in case of credit cards

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