Millions of people from all over the world use credit cards more than ever today. Be it for purchasing grocery at a super market or some product from an online store, there are a number of purchases being made using these cards. Despite this there are innumerable people, novice and experienced alike, who are still unaware of some of the basic features on their credit cards. Before you set out applying for plastic money, there are some features about it that you should definitely be aware of.
Unlike presumed by most people, there are various types of credit cards that are available today. Each of these cards is designed to target a particular segment of people. While the standard ones are recommended for personal use, there are premium cards for a select few in society. Charge cards are for people who don`t like any limits on their credit card account and store cards carry limited usage.
Each card comes with a predetermined credit limit, especially if it involves a revolving credit. The only exception to this is the charge card for which you need to pay off the balance completely at the end of each billing cycle. You can use the card for various purchases you make, until you reach your credit limit. Spending over the prescribed limit can lead to hefty fines in the form of over the limit fees.
This is the statement that will either be mailed to your address or emailed to your account at the end of each billing cycle. This statement will contain the details of all the transactions you have made in the current billing cycle. You can also obtain the details of the total outstanding on your card, the balance available and the various fees levied on your card. Most important of all, the statement will provide you with the minimal balance that is due on your account at the end of the billing cycle. Not making this payment on time can lead to delinquency charges and late payment fees being levied on your credit card account.
The annual percentage rate is commonly referred to as the APR and is the rate of interest applicable on your card either after the grace period or after the expiry of the introductory offer. The APR varies from one bank to the other and also from one customer to the other. There are various factors that determine the APR being offered to you.