Credit cards offer a revolving line of credit. The amount of debt owed can be carried forward from month to month for as long as a minimum amount is paid before the due date. Interest charges apply on the debt carried forward.
Just as already introduced under bank financing, credit card loans offer flexibility and convenience that we all desire. For an impulsive shopper, credit cards are just the real deal! Adding that 'super hot' pump or shoe to your collection is only a swipe away!
As convenient as it appears, you are obligated to pay back the debt to the card issuer! Most credit cards carry a maximum borrowing limit per month in the range of $2500 on average. Some companies though offer credit cards with no maximum borrowing limit, but impose certain preconditions for qualification such as full debt payment before the due date in addition to having an excellent credit history.
The approval process for getting a credit card is a simple process that takes no more than two weeks at most. For some companies, a maximum of two days. Most importantly though, prior to applying for a credit card, you need to decide if you really need a credit card in the first place. I personally learned that credit card debt has to be controlled after getting into trouble. At one point I had over over 6 credit cards. Today, I can gladly say I carry just one for emergency situations. Discretion is key to using a credit card to your advantage. Gather as much information about the available products as possible before you get into debt. Things you need to look out for include; Annual APR, Interest rate on purchases, Transfer charges and Cash advance charges. In addition, you might also want to know if the card option you choose is eligible for credit plans such as the zero-interest installment credit plan.
On some credit card products you are charged a fixed interest rate and fixed annual fee, while on others, in addition to a fixed annual fee you are charged a variable interest rate. The variable interest rate varies with the prime rate from month to month. Evaluate all options and determine the package that gives you the most benefit.
- Interest rate on purchases
- Interest rate on balance transfers
- Interest rate on Cash advances
- Penalty interest rate
- Card return Payment fee
- Card replacement fee
- Bad credit rate
- Instant approval rate
- etc.
Banks once in a while offer credit plans as a promotional package to keep their customers and win over some from competition. The details of these credit plans varies from bank to bank and may include variations of the following;
To determine the monthly installment, each purchase under an installment credit option, is divided through by the number of months specified in the installment credit plan and added to your
standard plan balance plus minimum payment.Just as already introduced under bank financing, credit card loans offer flexibility and convenience that we all desire. For an impulsive shopper, credit cards are just the real deal! Adding that 'super hot' pump or shoe to your collection is only a swipe away! As convenient as it appears, you are obligated to pay back the debt to the card issuer! Most credit cards carry a maximum borrowing limit per month in the range of $2500 on average. Some companies though offer credit cards with no maximum borrowing limit, but impose certain preconditions for qualification such as full debt payment before the due date in addition to having an excellent credit history.
Credit cards
Credit card companies offer a wide range of credit card products tailored to their customers' needs and situation. For instance, there are credit cards tailored to young adults, traveling customers and those for making everyday purchases.The approval process for getting a credit card is a simple process that takes no more than two weeks at most. For some companies, a maximum of two days. Most importantly though, prior to applying for a credit card, you need to decide if you really need a credit card in the first place. I personally learned that credit card debt has to be controlled after getting into trouble. At one point I had over over 6 credit cards. Today, I can gladly say I carry just one for emergency situations. Discretion is key to using a credit card to your advantage. Gather as much information about the available products as possible before you get into debt. Things you need to look out for include; Annual APR, Interest rate on purchases, Transfer charges and Cash advance charges. In addition, you might also want to know if the card option you choose is eligible for credit plans such as the zero-interest installment credit plan.
On some credit card products you are charged a fixed interest rate and fixed annual fee, while on others, in addition to a fixed annual fee you are charged a variable interest rate. The variable interest rate varies with the prime rate from month to month. Evaluate all options and determine the package that gives you the most benefit.
Credit card costs
The following are some of the costs for using a credit card.- Interest rate on purchases
- Interest rate on balance transfers
- Interest rate on Cash advances
- Penalty interest rate
- Card return Payment fee
- Card replacement fee
- Bad credit rate
- Instant approval rate
- etc.
Banks once in a while offer credit plans as a promotional package to keep their customers and win over some from competition. The details of these credit plans varies from bank to bank and may include variations of the following;
Zero-Interest Credit Plan
This is a promotional product offered by banks to its customers with a good credit history usually premier customers. If you access an interest free installment credit plan, you only pay a minimum payment including a monthly installment by the due date. Depending on the arrangement with your bank and credit rating, you can access zero-interest installment plans from 6 up to 36 months durations.Deferred Payment Credit Plan
Deferred payment Credit plans are usually seasonal and short-term; usually not exceeding 4 months. A deferred payment period begins on the date of purchase and ends on the date when the number of months
specified in the credit plan elapses. This period is also called the deferred payment period. Deferred Payment Credit plans are normally offered during festive seasons like Christmas period.
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