About Credit Card

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What is credit card? credit card is something that is used instead of cash. It is useful in shopping, travelling ,and many other purposes. We don’t need to carry money in cash you can use this card even when there is no money in your account for a limited duration you can use this money and you have to pay the amount within a due date and if the amount is not paid on time a very high rate of interest are charged you can even use the card to withdraw cash upto a limited amount.

A user is issued credit after an account has been approved by the credit provider, and is given a credit card, with which the user will be able to make purchases from merchants accepting that credit card up to a pre-established credit limit. When a purchase is made, the credit card user agrees to pay the card issuer.

When applying for credit card, You’ll want to find one with features that match your needs. This information can help you

• Understand the features of credit cards
• Compare credit card features and costs
• Know your rights when using your credit card
• File a complaint if you have a problem with
• your credit card

Till now we saw about the uses of the credit card and its purposes now we will see about its misuses Missing credit card payments might not seem like a big deal to you, but your creditors don't feel the same way. While Mr. Visa might not call you day or even week after your payment was due, he's certainly taking action behind the scenes. How your creditors respond to late payments can continue to affect you for months, and even years, to come.

1. Your creditor will charge a late fee. Your next billing statement will include a fee for the late/missed payments. Late fees typically range from $15 to $35. You'll receive a late fee each month your payment is late.
2. Your interest rate will increase. Creditors don't just penalize you with a fee, they'll often increase your interest rate to the default rate. The higher interest rate increases your finance charges making it more expensive to carry a balance.
3. Other credit card interest rates might increase. If any of your other creditors include a universal default clause in your card agreement, you see those interest rates rise, too.
4. The credit bureaus are notified when your payment is more than 30-days late. An entry is added to your credit report and will stay for seven years.
5. Your credit score will drop. Because payment history makes up 35% of your credit score, late payments can have a significant effect on your score affecting your ability to get new credit in the future.

As you see credit cards have been a very helpful for some people such as business people or for the middle class people as they are salaried they use the credit cards and they as they receive their salary on time this doesn’t affect the people because their payment mode will be on time . While some people just go on using the cards and they don’t’ bother for the payment and if you be so delayed even the bank won’t spare you and it will be charging you a high amount of interest And even than if you don’t pay the bill the bank people come at your place and blacklist you for ever than you won’t get any banks credit card as you will spoil your image .therfore make proper useof it.

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