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Credit cards have become very common across the world right now. Almost everybody uses a credit card, for the sheer sense of power and convenience that it provides. Also, due to the fact that credit cards allow one to make purchases on credit without any hassles. This has resulted in a total change in the spending pattern of people.

The normal way in which a credit card works, is that the bank gives a credit card with a certain amount of, credit limit to a customer, and that customer pays interest on the balance carried on the card. The credit card can be used to buy goods and services by swiping the card or cash can be withdrawn from it at an ATM. Debit cards, on the other hand, will only provide money that is present in your bank account. They will not provide any extra money, only what you have in your account. There are a number of charges that a person might have to pay in order to maintain a credit card. This includes interest on defaulted loans, annual fees, and over withdrawal fees.

The issuers are now also offering certain credit cards with no annual fees. This is fairly common and anyone can get an entry level card with no maintenance fee. This strategy attracts more customers, as they prefer not to pay any regular amount to maintain their credit card. However, the catch is that no-annual fee cards, will not usually give many rewards, and sometimes they might not give any rewards at all. There are several paid cards that give rewards such as gas miles, air miles or cash back on purchases. Nevertheless, if you are really lucky, and you shop around you may find no annual fee cards, which will have a good reward scheme.

You can get other types of bonus offers too. Like a free insurance scheme, travel and vacation packages (these are not useful for the majority due to time constraints and other commitments, hence they must be avoided), and also other services like car rentals or season game bookings. If you start chasing these rewards, you might end up spending more than you require and this needs a lot of self control. Getting a no annual fee card is a step in the right direction. It will automatically reduce your expenditure and make room for good judgment when you look for rewards.

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