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Credit cards have revolutionised the financial industry. Every individual is not blessed with exemplary wealth. In order to invest in properties or cars and even to meet other liabilities, people do require taking loans. When travelling outside the country, it is not always possible to keep ready cash in hand. There always remains the fear of theft. Credit cards have helped in overcoming the above problems. It has facilitated cashless transaction of money.
Benefits of using credit cards
1. Provides cashless transaction of money.
2. Repayment becomes easy, as adequate time is given before the bill cycle initiates.
3. Easy to carry.
4. No fear of theft as even if stolen they would be of no use.
Riders that come with the credit cards
1. Since immediate repayment is not needed, credit card holders tend to cross their budget when using it.
2. The interest rates levied on the credit card holder, in case of late payment, is very high.
How to choose the best credit cards
Certain steps if followed properly, can help in choosing the best credit card with maximum benefits.
1. When applying for a credit card, the terms and conditions that are associated with it should be properly understood. Yearly charges, interest rate, late payments, grace period, etc are some of the details that need to be pondered upon.
2. There are credit cards that do not charge an annual fee. It would be best to choose from such credit cards.
3. The interest rates charged for different transactions vary from bank to bank. In some cases, online transactions are charged more than normal transactions.
4. Applicants can take the help of customer care officials to understand the bill cycle of the credit card. Cards that offer a longer grace period, should be given priority over the others.
5. Credit companies charge additional interests for late payment. This interest rate varies from company to company. It`s important that the card chosen by you attracts the leas late payment fees.
6. All credit card companies offer discounts and cash back to its customers. This is done to attract more customers. Bargain for better offers, and discounts before choosing the card. In case you require to make a balance transfer then bargain for 0% interest on balance transfer.
7. Make a note of all the offers that are promoted by the company. It would be best to choose a credit card dealer with the least complicated cash back conditions.
8. Finally after choosing a card, ensure to maintain a good credit history.
