How to Use a Credit Card – 10 Tips for First Time Users

The credit card is easy to get from where the borrowing is easy to find. The use of credit card inadequacy is a matter of debasing as it does by plundering the livelihood. While credit cards are very useful for the essentials in life. The credit card’s tough temptation is that it’s easy to get money. It is also an inspiration to spend more money. So before you start using a credit card, you have to keep a certain limit and keep it strict. First time credit cardholders take care of some things.

We can do things without money from hand, so we love credit card. It is the interest payable to make shopping. Everyone knows that the interest will have to pay a huge sum of money if it does not settle within the stipulated time. Let’s look at the top ten words you know about the credit card.

10 Tips for first time credit card users

1. Annual Fees

Banks charge annual charges for credit card facility. Most banks will exclude this fee in the first year as part of attracting new customers but the bank can ask the person to pay the fee for the cardholder. Do not be afraid of this APR for someone who does not pay the exact amount every month. At the same time, it should be scarier if it is late to pay the bill and delayed repayment of credit card loans. All of this will add you to a charge.

2. Be sure to check the terms and conditions

Read and understand the bank’s terms and conditions correctly by taking any bank’s card before getting a credit card.

3. Avoid pulling the cash out

It is better not to withdraw cash using a credit card. If it is withdrawn, it must have a range. Because the withdrawal of money through a credit card would have to pay a much higher rate than the other transaction.

4. Billing Date

The bill will be paid on each bank’s credit card at different dates. Credit should be paid back soon before the billing date. Prepare the bill for that day as billing. Due date will be the last date for paying the bill. Billing cycle is the period from one billing date to the nearest billing date. These are all clearly mentioned when the card is given.

5. Balance Transfer

Balance Transfer is a transaction from a company’s credit card to a liability to another company’s card. This will help to escape from APR charges. People use this facility to move from low-cost companies to small companies to APR charges.

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6. Credit Limit & Cash Limit

Credit limit is the maximum limit on which a credit card is used. There is more credit limit to indicate your ability to repay.

Credit limit and cash limit are two. Cash Limit is the limit for withdrawing cash from a credit card. Note that withdrawing money from a credit card is not as intellectual. Banks charge for this service.

7. CVV (card verification value)

CVV is the three digit number you see behind the credit card. This card verification value is essential to make online payments.

8. Late fee

The cardholders are obliged to pay the lender payment fees if they do not pay the exact amount.

9. Cashback

Certain cash-back policies offer some institutions to promote credit card payers. A certain amount will be awarded to the bank.

10. Do not borrow from the loan

Getting a credit card is less secure. The interest rate is very high. Interest rates range from 29% to 48% a year. This will not affect your credit scores if you take the lowest amount.