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Secrets of Credit Cards

Secrets of Credit Cards

As we know that credit cards have become an important part of our life nowadays. Each and everybody is using credit cards for their personal uses and for business purposes as well. Credit cards are short-term loans in short. You can borrow the money from banks or any financial companies whenever you need in an emergency. You just have to return the money back to the banks or the financial companies within the prescribed time.   There are so many types of credit cards offered by different banks and financial companies. We always wonder that why credit card offers so many rewards. It is not just that there is a reason behind this. here we will try to find that out.

Customers

You will wonder to know that most of the credit card companies earn their money from their customers and cardholders. They charge money in the form of interest.

These companies make a fortune, primarily from the latter alone. This is because most customers don’t pay their leading balances in full.

 

Different Kinds Of Fees Linked With Your Credit Card

 

  • Annual Fee: There is a certain amount of fees that you have to pay annually for the use of credit card for purchases.
  • Cash Advance Fee: This is fees that you have to pay if you withdraw money from your Credit Card. But it’s interest rates are very high.
  • Late Fee is also linked to your credit card. If you don’t pay your bills on time then you will be charged an extra amount of fees.
  • Foreign Transaction Fee. You have pay extra if your purchase in the foreign country.
  • Over-limit fees: If you use more than the limit then you have to pay fee.
  • Conducting out promotional exercises on side of their associates is another revenue source for Credit Card companies. Airline companies, retailers, and hotel chains usually pay Credit Card issuers to promote their deals to cardholders

The Use Of Credit Cards- Advise

 

  • You should always pay your payments on time.
  • If you are not extravagant or spender than choose a card with no annual fees.
  • You should not take a cash advance on your Credit Card.
  • We should not exceed your credit limit.
  • Do not utilize more than 30% or 40% of your credit limit.

 

  • Promotions

 

Conducting out promotional exercises on side of their associates is another revenue source for Credit Card companies. Airline companies, retailers, and hotel chains usually pay Credit Card issuers to promote their deals to cardholders.