What Does a Credit Card Mean?
Credit card ie Borrowing account Think if you do not have how but you have to make purchases, then what will you do, the answer may be different for everyone. But those who have a credit card. He will say there is no tension.
We will pay the bill with a credit card, how can you shop without a credit card. It is like a loan account, you keep paying the purchase bill and pay your credit card bill once at the end of the month. Today we are going to tell you about it.
What Is a Credit Card?
A credit card is a thin plastic card issued by financial institutions.
Difference Between Credit Card and Debit Card
The main difference between credit cards and debit card is that when you swipe the debit card, you do money directly from your bank account. On the other hand, money is deducted from your pre-approved limit on credit card purchases.
Credit card means credit card The credit card user is required to pay an interest charge if he does not pay his bills on time. Whereas no interest rate is charged for the debit card user because no amount is borrowed by the bank.
Credit Card Advantage
With the help of a credit card, you can spend regularly. Credit Cards Using a credit card for regular expenses also helps you keep track of them.
Paying online with a debit card can prove to be dangerous. Debit card The risk of payment from a debit card is big because this one can blow the entire amount connected to your bank account at once.
In the case of credit cards, the credit card gives time to rectify the mistake. A credit card helps you in case of emergency Credit card is an easy money option as compared to the time taken to process the loan to withdraw more money from the bank account.
If you spend money with a credit card and pay it on time. So you can build a better credit score. It helps you in the long run, especially when you apply for a business loan personal loan.
Need for Credit Card for Businessmen
The credit card has become a daily necessity in today's era. Credit cards are used for many important things from shopping to credit cards. Business people also use credit cards, they use it to take loans. It is a different matter that this loan is available in advance i.e. you can shop when you need it. In business also some such need comes suddenly.
Like if there is a need for any equipment or the need of any goods which is affecting the business productively, then it has to be fulfilled at any cost, for any such need, credit card is used. Is. The biggest thing is that if you are paying your credit card on time, then you do not face any problem in taking a business loan or personal loan.
How Many Types of Credit Cards Are There?
From shopping to paying electricity bills, everyone uses credit cards. How many types are these? And we are telling you about how we can use them.
Types of Credit Cards and Their Features:
Travel Credit Card - With the help of a Travel Credit Card, you can avail of discounts on all airlines tickets, booking bus and train tickets booking and much more. Whenever you book a ticket, you get something or the other which you can redeem later
Fuel Credit Card - By availing of fuel surcharge waiver with the help of Fuel Credit Card, you can take advantage of the offers offered by petrol pumps, apart from earning extra reward points, you can save a lot of money throughout the year.
Reward Credit Card - On every transaction of this type of credit card, some reward is available. Cashback is also available on some cards. If you pay by card anywhere, you will get a cashback of one or two percent.
Shopping Credit Card – Shop online or offline at partner stores to get discounts on shopping credit card purchases or transactions. Using this card, you can get year-round cashback, discount vouchers and more from partner stores.
Secured Credit Card - People who have very poor credit scores i.e. CIBIL score should apply for Secured Credit Card. This card proves to be very useful for those with a bad credit score. If you open a new account or apply for a loan, you can correct your credit score with a secured credit card.
Balance Transfer Credit Card – When you can go for a balance transfer credit card to avoid huge interest or penalty. It helps in reducing your existing credit card dues. In such a card, you get 6 to 21 months to clear the dues. Yes, for its use you will have to pay a one-time balance transfer fee, which can be up to 5% of the total amount.
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