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The credit card has certainly helped simplify one`s use of money. The credit card has fast become the essential shopping companion, with almost all stores accepting popular credit cards in lieu of hard cash. There are several banks and credit companies that are committed to providing credit services that are tailor made to fit the requirements of their customers. The credit limit is one such.

The credit limit on a credit card is determined by the financial status of the user. The bank or credit card Company issuing the credit takes into account the applicant`s income and other financial commitments. In a way, the credit card can be seen as a kind of staggered loan sanction, the interest on which is calculated on the amount spent from the credit balance. The benefits of a credit card are very many. However, one must scrutinize the various schemes and benefits available before choosing one credit card over the other to maximize the benefits offered.

At the offset, one must pick a credit card with a credit limit that suits ones` income and expenditure trends. The interests charged on credit cards are not low. Therefore, even if the credit card company offers to provide you with a higher credit limit, it is best to only avail of a credit balance in proportion to your needs. People generally tend to use as much as the credit limit allows, following which, repayment may become a burden. After choosing a credit limit that suits you best, spend some time reviewing the offers and schemes offered by the Credit Card Company or bank.

Some of these benefits may come in the form of payback schemes while others may be rewards for using the credit cards. Again, each type may suit some more than it does others. You can be assured though that almost all credit companies and banks offers one or all of these.

Payback schemes: Credit card companies are constantly battling competition by offering new schemes to customers. These schemes may include lower interest rates, better installment regulations and opportunities to transfer balances. These schemes are likely to constantly change. Therefore, one must keep a watch out for the new schemes that hit the market.

Rewards: Rewards are offers made by the credit card companies, awarding points and other gifts to customers, the extent of which is determined by the amount the user spends. The most common rewards come in the form of air miles, cash backs and points. Each of these is an incentive to get the user to use his/her card more frequently.