Credit Card Advantages and Disadvantages
I don’t want your credit card, who gave you my number.
If banks are really after us to get a credit card then they
must be dalma Cousteau Kala, but if that’s the case,
why did billionaire Kevin O’Leary gave His Son, this
advice. I told my son as soon as you get one Trevor,
put 50 bucks on the car.
Yeah, and pay it off, billionaires also get a credit card,
even when they don’t need it, because there are some
secrets about credit cards that can help you get rich,
and by the end of this video, I’m going to tell you those
secrets because in today’s video you’re going to see
three disadvantages of using a credit card, three advantages,
one secret advantage, where this piece of plastic can help
you buy a house. And towards the end, I’ll give you a
bonus tip to help you understand how to use credit cards
wisely. But before that, if you like our work, make sure
you smash that like button. Let’s begin.
So you know what a debit card is right, it’s a card that deducts money from your bank account every time you use it, but using a credit card, it’s like taking a quick loan from a bank, and you have to repay back this money to the bank within a billing cycle, which is usually for 50 days.
These 50 days are your interest-free period. Does it mean you can spend 10 crores using a credit card on your first day? Not really. Your credit limit. That is how much can you spend using a credit card is decided by the bank, based on your income level credit scores on and so forth. So basically credit cards gift people money that they don’t have. And that creates problems, problem
Credit Card Disadvantages
they promote impulse buy every website you go to will show you an ad in fact you must be seeing one right now. It’s not wrong to buy, but when we are not in a good place mentally, just to get a quick buzz, we buy shoes, we don’t need or that fifth game of thrones t-shirt that just lies at the back of the closet.
This kind of impulse buying is pushed further when you have a credit card because with the credit card, you don’t have to pay now you can pay later. So if you already have these emotional issues to resolve first, then, credit cards, might not be your friend. In fact, comment below and tell me what is the last purchase you made that you regret. Was it a midnight ice cream or a T-shirt you already had or shoes you did not need?
they put you in a lot of debt interest rate of home loan is around 8%
car loan is around 10 personal loan is around. 12, do you know what
is the interest rate of rate cuts between 24 to 42% per annum MATLAB
if you pay back the money to the bank within your billing cycle then
okay zero interest. But if you default by just one day, then here’s
what happens. You have to pay interest, not just for one day,
but starting from the day you made the transaction. Assuming
you made it at the start of the billing cycle, then your interest
is on 51 days, not just one-day late payment charges
would be applied.
You have to pay 18% GST on the overall interest accruing, and God forbid if you make a new transaction before paying off this old amount, then this new transaction would have an interest free period and will start attracting interest from day one. Apart from these payments to solid waste that credit card companies make money is this, if you withdraw cash using a credit card, then you start paying interest right away from day one credit card companies tell you. Oh, so you have to pay 50,000 this month. Don’t worry, just pay 5% of it, that is a minimum amount you, and you won’t be charged any late payment fee.
You think it’s a boon, but it’s not because you will still end up paying high-interest rates on the remaining amount. So the day you get your credit card swear to god that no matter what, you will always pay your dues on time because if you do,
credit cards can spoil your credit score. Now listen to this very carefully, a credit score is a three-digit number ranging from 300 to 900 this score is used by banks, credit card companies, or even insurance agencies to decide whether or not to offer you credit, and what the interest rates would be means if you want to do business, or even have her barber chain this country then having a good credit score is very important in India, there are some bureaus that keep track of our credit scores like if possible.
I’ll tell you more about the score later, but for now, remember that this score should never go down. But if you don’t pay your credit card bills on time, it will. You can even keep track of your credit score through apps like credit, which allows you to manage all of your cards in one place, and even rewards you every time you pay your bills on time. I’ll tell you more about credit later. For now, those were the three problems of having a credit card. But just like that gulag Java on my website Holly, I saved the best for the last. So here are the top four reasons why credit cards are great.
Credit Card Advantages and Disadvantages – Advantages of Credit Card
credit cards have benefits if they’re charging you so much interest surely they must be offering something in return. First, depending upon the credit card you opt for you can get benefits like reward points every time you fill petrol book air tickets movie tickets hotel rooms, no-cost EMI offers cashback offers complimentary lounge access in an airport, which we frequently use for international flights priority airport check-ins and some cases insurance cover for travels, but getting a credit card just to get free food at airport lounges is silly, the more important benefits of credit cards are.
They are universally accepted. I bought my first credit card in 2012. When I had to travel to us who work alone. It was my first international flight, and I was told that debit cards might not work everywhere. So before I left I bought myself a credit card, and thanks to it I had no issues grabbing a quick meal in between a connecting flight at Heathrow where the currency was pounds, paying for the cab from the airport to the hotel, and checking that the hotel where the currency was, dollars.
And when I went out to see the world, it worked at all stores and amusement parks, they also work across multiple websites whether you want to buy an online course or set up a recurrent transaction at Netflix. But if you’re using them everywhere surely safety must be a concern, which is why they offer the benefit
Credit Card Advantages and Disadvantages – Number 3
strong Buyer Protection. These days we seem to make a transaction at some new website every month. The good news is Reserve Bank of India has shifted the responsibility of proof of customer liability to the bank, which means if you don’t get your order you can ask the credit card company to raise a dispute against the transaction. This is called a chargeback, and it protects you from fraudulent transactions, but read the terms and conditions of your credit card carefully to ensure that they do offer the chargeback benefit. And now it’s time for the secret Credit Card Advantages and Disadvantages
Advantage Credit cards, Bill your credit score in that video this is what Kevin O’Leary was really saying, I told my son as soon as you get one Trevor, put 50 bucks on the car and pay it off, and now he’s got a pristine credit rating and he’s only ever put a few 1000 bucks to the car. Everybody should understand that there’s no way to game that system, you’ve got to establish a credit rating, or you can’t borrow, as he said you must establish your credit rating, as we discussed earlier, credit rating or credit score is a very important number. And one of the ways of building it is to get a credit card.
Use it to spend small amounts, and repaid back immediately. This repaying on time, over the years, is what will build your credit score. And when you have a good credit score. This is what happens, you can get a good premium for insurances, you can negotiate the interest rate on your credit cards, but most importantly you will get a better interest rate, or your loads beat for your education starting a business or to get your dream house.
To give you an example, this house that we’re staying in has a loan on my name, I and my husband took a joint loan, but I have a better credit score, and the bank said that the interest rate would be lesser if it was taken on mining. And that’s how a good credit score helped us land a good house at a good interest rate. In short, a good credit score is equal to a happy life. Because it can help you with your education with your business and even your house. One of the apps that can help you maintain a good credit score is credit. This video is in association with them because I’ve been using credit since 2019. Before I give you the bonus tip let me quickly tell you about them.
Credit is an app where you can keep a track of all of your credit cards in one place, it makes payments instant seamless and rewarding. They reveal any hidden charges on your statement. And every time you make your credit card payment on time they reward you with red coins and discounts on their store. I’ve been a credit member since 2019 because in one of the talks I heard the CEO Kunal Shah saying that credit is not just an app. It’s a tribe of people who make good financial decisions. And I wanted to be a part of that tribe.
Credit Card Advantages and Disadvantages – विलय किसे कहते हैं? भारत में बैंको की स्थापना और उनका विलय
I have two credit cards, American Express and ici, and I manage them through credit. As you can see on the top every payment gave me credit coins that I have accumulated since last year, and I can go to the store, check out the offers available and use my credit coins to avail myself these offers. I’m not bragging but that is my credit score. Not bad. It means that I follow what I preach. I pay my bills on time, I maintain a good score and I only promote what I believe in. Or use. so read all about them and if you think credit is where you want to be. Then download the app using the link below. Enter your name and phone number and credit will automatically.
Credit will automatically fetch your credit score. Remember you can be a credit member only if your credit score is 750 and above. Good luck.
I think by now you know that red cards can either make or break you. So to use them wisely I’m going to give you a simple urban fight copyrighted formula while using credit cards remain f A and E. Same s spend only as per your purchase capacity charges anywhere paired with a pillow. You’re not taking credit cards for money, but to build your credit score. An auto-debit or debit helps you from falling into the hellhole of paying interest tax as late fees and getting a bad credit score and have no more than one or two credit cards, because why.
And he extensively researches your credit card’s annual fee, interest rates hidden charges credit benefits and read the Terms and Conditions carefully. The job of an agent is just to sell you a credit card. It’s your job to find out whether the credit card is useful for you or not. So today’s bonus tip is this while using a credit card remain sane because that’s the only way to use credit cards wisely.