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Total Views: 34Word Count: 435See All articles From Author One of the evolutions of digital banking has been the complete overhaul of payment systems. With this has come different types of plastic money that is fast replacing actual cash used in our lives. One of the most popular types of plastic money is a credit card.
What is a credit card?
A credit card is a card that lets the user spend money up to a particular limit and repay that money after a period of time. The reason why people prefer credit cards is that it allows a person to borrow money from the card company and pay it interest free after a period of time. Generally, credit card companies give a grace period of around 20-25 days after the end of the month in which spends are made. By properly planning spends, it is possible to get an almost two month credit period for spends.
Each credit card comes with a defined credit limit beyond which the user can鈥檛 spend without clearing the earlier dues. This credit limit is based on the income of the user Marvin Jones Jr Jersey , the credit score, payment history etc. Credit card companies revise the credit limit based on the relationship between the user and the company.
Credit cards also come with a reward point system for amounts spent on them. These reward points can be converted into airline miles or redeemed on future purchases. Some cards give vouchers on crossing a certain spend and provide discounts on their dining and shopping partners.
Depending on the benefits you are looking from your credit card apply for those cards through their website or directly from the credit card company. One important thing to remember is that credit cards charge an annual fee for the convenience that they provide. Be sure to read and find out about the annual fee from the second year onwards since several cards may waive off the fees in the first year to attract customers. If the credit card fees are something you can afford and the reward point system is robust, then the credit card is worth getting.
How to apply for a credit card?
These are the ways in which you can apply for a credit card: