What
is a credit card?
Imagine
yourself having spent all your salary and its 5 more days
before payday and you this need to buy this much needed
commodity. Probably all you can do is borrow from others, what
if the persons you wish to borrow from are also broke?
Well, figure that no more. With a credit card, you
could always buy what you need and even buy what you want even
if you don’t have that cash on hand. That’s the power of a
credit card!
Almost
everybody knows what a credit card is, but for the purpose of
reiterating, a credit card is a plastic card that is given by
a company which deals with them. Unlike a debit card, a credit
card would not require backup money inside the bank to let you
use it. It lets
you spend up to a certain amount known as you credit limit.
And let you pay off the amount spent though payments
made every month. Usually these payments are amounts agreed
upon by both parties. Once
you fail to pay the amount due every month, you will have to
pay the interests or dues due to failure of payment.
To
have a credit card has become a necessity in the fast evolving
cashless society we have, but to own one has its share of
risks as well. The
key to effectively manage your card is to always look into
your finances and don’t let your debts add up least it would
heap like a mountain and you’d have trouble catching up.
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