What you need to know about your credit card

Posted: August 18th, 2013 | Author: | Money

A credit card is a quite popular tool that is offered to us very often as a measure to increase our liquidity. Is it true that we can include the financial products of this type? Or is it unnecessary add-on? The truth is that with a credit card you need to know how to use it. Then I actually can fulfill its role and prove to be a very useful tool. However, this means that we must be aware of its mechanisms of action.

Images_of_Money / photo on flickr

Images_of_Money / photo on flickr

50 For example, let’s take a couple of days without interest. How much truth is in this slogan? Quite a lot, because in fact there is not any time without interest, but it begins at the moment of the creation of the debt on the card. Period without interest is calculated at the beginning of the tax period, and if we have a 54 days no interest and the debt created 14th day from the beginning of the settlement period, it will be only 40 days. Similarly is with interest. If you have been charged, it is the total amount that we were “in the red”. So if you borrowed 500 pounds and 400 pounds repaid before the end of the settlement period, interest will be charged for 500 pounds. This is why it is important to pay off its debts on time.

We must also remember that the credit card used for electronic payment. Using it in an ATM end loan with a very high interest rate without any discount or interest-free periods. Avoid it at all costs. The responsible use and knowledge of the mechanisms of credit cards, they can become a very useful financial product. Better yet, use it responsibly and either often or not at all.

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