Credit-cards is a modern tool for the payment offered to bank client (cardholder), for the sole purpose of payment for goods and services.
Credit cards offer provide holders convenience in payment. It relieves users from the stress they stand to face carrying buck of cash all around. Just with a simple plastic piece, holders of the card can make payments for goods and services. With the credit card, holders can pay for goods and services.
Credit-cards application is what bank account holders look forward to. Most times, Banks expect clients to do their credit card applications online. But whether online or offline, this article will give you a walkthrough of what you stand to gain from credit-card and the type of credit card to apply for.
It might sound bad each time you remember you are indebted through your credit-cards usage, but I will like to make you understand that this is the only way you can build your credit score to enable you to qualify for a decent loan like a car loan or house loan.
There are credit cards for bad credit, there are those for a stable account, and there are banks that offer a special student credit card to help students that are in school.
How Credit-cards Works | CR Card
A credit card offers is different from a charge card and debit card. Credit serves in place of money. Users can purchase goods or pay for services with a credit card. But each cardholder swipes his or her card to buy goods or pay for services, the users end up borrowing money from the issuer bank which the users are expected to pay for later.
All that is expected from the cardholder is the ability to pay their bill on time and not exceed their credit limits. If and only if users can maintain this rule, they will end up getting a good credit score that can qualify them for a better loan to say house or cars.
Remember that the lender house can slap users with an additional bill each time they default these two rules.
CR cards are a safe and secure means of payment. This is credit card companies like Visa, Discover, and Chase do all they can to ensure that no fraudulent activities take place on the holder’s account.
Advantages to watch out for When applying for a Credit Card | Apply for Credit Card
- What out for the Credit Card’s Annual Percentage Rate (APR).
Credit cardholders are meant to pay the lender bank a certain APR. So, when applying for a credit card, look out for those with low APR. Most times credit cards come with an introductory rate of % APR for up to 6 months without annual fees.
- The credit card should come with Zero Liability. So with this, the cardholder is not liable for any authorized purchase.
- The credit card should have a free alert to users or holders when they start approaching their credit limit.
- Go for a credit card service that comes with credit education which helps users/holders manage credit effectively.
- Most credit lenders give to its client services like travel insurance and rental car insurance. It is a good point to watch out for.
- Though every credit card comes with a fee. The one I want to spell out here is Over Credit Limit Fee and Late Fee. They can be avoided if the user or cardholder is given a good education by the lender bank.
- Go for a credit card with low interest. Check out their customer services if it is functional 24/7.
Some credit card comes with a reward for proper usage; this is another point to look out for before credit cards applications.
If you are in the world of the fast-paced business world, the best credit card for you should be Business Credit Cards which comes with benefits for those in the business world.