Unknown to so many people out there, credit cards are not designed to encourage a life of luxury.
Many people wrongly assume that owning a credit card gives you freedom to buy whatever you desire. While it is true that it gives you freedom, it is not the freedom to spend money recklessly. It is meant for you to pay for your purchases without using physical cash.
This does not connote that you are not paying for your purchases. Actually, you do. The payment for the goods or services you bought is usually billed to your credit card.
Unlike what happens to many people out there, owning a credit card is supposed to make you wiser financially. In other words, you will be able to control your spending and avoid credit card debts that many people often fall into as result of the misuse of credit cards borne out of their misconceptions of the card.
You must realize that all credit cards have cash limit. In other words, anything you buy after exceeding your cash limit is bought on credit. This means that you owe your credit card supplier money. Many credit card holders are usually informed of this limit by suppliers in order to help them avoid uncontrolled spending which leads to debts.
Also, you must realize that every credit card has an APR. APR is the annual percentage rate or credit card rate. It is the rate of interest that you will have to pay on any balance that you owe your credit card supplier. The higher the APR, the more you will have to pay as debts.
Another thing you must know about credit cards is that it is often accompanied by monthly payments. You will be required to pay your credit card bills every month. If you default, the balance you owe will be charged on the percentage according to the APR agreement and you will end up paying more than you spend. It is highly recommended that you pay your bills every month in order to enjoy credit cards. Even though it is true you can own more than one credit card, you should be informed that defaulting in your monthly payment will result into huge debts for you. - 15224
Many people wrongly assume that owning a credit card gives you freedom to buy whatever you desire. While it is true that it gives you freedom, it is not the freedom to spend money recklessly. It is meant for you to pay for your purchases without using physical cash.
This does not connote that you are not paying for your purchases. Actually, you do. The payment for the goods or services you bought is usually billed to your credit card.
Unlike what happens to many people out there, owning a credit card is supposed to make you wiser financially. In other words, you will be able to control your spending and avoid credit card debts that many people often fall into as result of the misuse of credit cards borne out of their misconceptions of the card.
You must realize that all credit cards have cash limit. In other words, anything you buy after exceeding your cash limit is bought on credit. This means that you owe your credit card supplier money. Many credit card holders are usually informed of this limit by suppliers in order to help them avoid uncontrolled spending which leads to debts.
Also, you must realize that every credit card has an APR. APR is the annual percentage rate or credit card rate. It is the rate of interest that you will have to pay on any balance that you owe your credit card supplier. The higher the APR, the more you will have to pay as debts.
Another thing you must know about credit cards is that it is often accompanied by monthly payments. You will be required to pay your credit card bills every month. If you default, the balance you owe will be charged on the percentage according to the APR agreement and you will end up paying more than you spend. It is highly recommended that you pay your bills every month in order to enjoy credit cards. Even though it is true you can own more than one credit card, you should be informed that defaulting in your monthly payment will result into huge debts for you. - 15224
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