How Credit Card Is Better Way To Pay

What is Credit Card?

A credit card allows you to borrow money from the bank to make purchases, it can be anything like a burger or a flight-ticket or jewelry etc. As long as you back the borrowed money within the given period. Otherwise, you have pay interest on that money. Before you take credit card, ask yourself that do you really need this? Because it can put you in a bad situation if you miss your credit card payment.

Carrying credit card is more convenient than carrying cash with you. But be careful with a credit card you don’t overspend and can’t pay back the money you have to spend. And if you use the credit card responsibly you can make your credit score better by every payment.

On the other side, if you miss your due date it will make your credit score down and later it will become a headache for you to pay huge interest on your borrowed money.


Choosing A Bank

Your credit card is issued by banks and they will decide your interest, fees, and rewards. The transactions processed on a visa, MasterCard etc. that decide where the card will be accepted.

Choose the card wisely that which card is providing better offers and reward points on every purchase.


How To Pick Best Credit Card?

By asking the right question to your bank while issuing the card will help you to go for a best-suited card for you.

Follow these steps:

  1. Check Your Credit:

Find out the card for which you are eligible by checking your credit score. If you have a high score then you might get more offers and low-interest rate. You can improve your credit score too. Look at your reports where it is causing a problem and resolve that. You can go through your mistakes and take steps to make it good.

  1. Identify which card do you need:

Identify which card is best for you, do you need a card with less interest or which provide good rewards on each purchase. Like if you want to rebuild credit that secured credit card will be best for you. If you want to save on interest, in case of emergency it is the best choice for you.


Benefit Of Credit Card
  • Up to 50 days of interest-free credit: A credit card provides you interest-free credit up to some specified time limit. Whether in the debit card you won’t get interest free credit.
  • Reward points: Every time you purchase through credit card you earn some reward points. The earned points you can redeem against gift cards, vouchers or while buying air tickets. The debit card also gives you reward points but not all banks provide this offer. And the usage of those points is limited as compared to credit card.
  • Discounts and cashback: You can get offers online or offline while purchasing the item. Many discounts and cashback offers are available for a credit card as compared to a debit card.
  • Build or improve your credit score: It is a better way to improve your credit score. People who have not taken a loan, a credit card is best to improve their score. Or the people who have low credit score can improve it by using a credit card wisely. Debit cards don’t help you to improve the score.


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