What is a credit card?

It is commonly known as plastic money that is used in place of cash. A credit card is used to buy any product on the market on credit. Have. 16-digit no. ° CVV. and a unique pin does not. which must be kept secret by the user.

It has replaced banknotes and found a permanent place in our wallets, yet it is an unsolved mystery to many and thus results in hundreds of complaints about excessive fees, charges that are not well understood despite the fact that banks provide users with all the necessary information in the form of a printed “terms and conditions” that come with their card kit.

Users often have mixed opinions about a credit card. Some users are very happy with these, while others are so irritated that they strictly deny having one in the future. We are going to discuss the same topic here.

Generally, a credit card comes with benefits and some fees that are not really hidden. Like different cards, they come with different annual fees, late fees, and other fees. But when a person applies for a card, they often only see the benefits and not other rules and regulations. Somewhere, there is also the fault of the seller, as he cannot properly guide the customer. Resulting in your negative feedback. So is there any solution to this problem? Yes, of course, a little attention can save you unnecessary charges. What you need to do now is read these important tips to follow to play safely with credit cards.

Anyone who requests it should know these facts:

– There is an expiration date mentioned on the statement. You must pay your bill before this due date to avoid late fees. All banks have different late fees, such as Rs 750 per month.

– In the statement, two amounts are mentioned, namely the minimum amount owed and the total amount owed. To avoid interest on your next bill, be sure to pay the full amount due instead of the minimum amount due. Paying the minimum amount due will give you a low cibil score and unnecessary charges on your bill. These fees vary by bank and can be 3 to 4%.

– All cards have a fixed billing cycle and payment date. So, don’t forget to manage your expenses to pay the bill on time.

– Always check your statement. And if you think it is necessary to correct it, please do so within 60 days.

– Always remember your credit card number. In case it is lost, it is easy to quickly report it to the bank. Plus, it can be easy to shop online because you won’t have to always take it out. However, when buying you also need CVV no. and expiration date. But it is good to remember your credit card number.

– Check annual charges and other bank fees when applying for a credit card. All banks have different fees and charges that you should check. This will help you understand your credit card and upcoming charges. Therefore, you will not be surprised by these fees and charges.

– Credit cards come with certain points and rewards program. These points are converted to the value as in some cases 2 points = Rs.1, while in some it is as 4 points = Rs.1. You need to know about these reward points to redeem them later.

– Verify that your bank gives you a refund with purchases. Refund means that the refund amount your card is responsible for will get the cash back to your account at the time of the billing cycle. The value of the refund is charged to your account on the statement. This is a nice feature and it will help you save every time you shop. To do this, you must check what offer your credit card offers.

– Do not use the full limit of your credit card, as it can cause a loss in your credit score. To maintain a healthy credit score, you shouldn’t spend more than 50% of your credit limit.

– Do not use your card to pay other credit card bills or any other debt. It will lead to poor financial health. Instead, you can apply for the personal loan that is easily available at a very low interest rate.