While applying for a credit card is one thing to consider, knowing how it works and what it can do is another. This kind of tool is actually made of plastic and is used as a tool in making purchases and, paying for goods and services. In a manner of speaking, it is a convenient substitute for your cash. It is usually 3-1/8 inches by 2-1/8 inches in size and contains identification information such as your signature or your picture. These are very handy mercantile instruments because you bring it anywhere and use it for almost every time you need to spend money. In short, it saves you the trouble of keeping a lot of cash with you.
Your card basically works in this manner: You go to the store, you find something you like, you present your card, the store clerk swipe’s it at the machine which reads your card, the details, the cost of the item you are buying, and then a receipt will be given to you. In essence, the card issuer or your bank, as the case may be, pays the store for the item you bought through that card. Now you will have to pay the bank for the cost of the item. The bank will send you notice of your bills, credits, the interest rates and when you should pay them.
Yes, there are interest rates for your credits every time you use it. This is how banks earn profit from your card. Different banks offer a variety of interest rates for your card. There are low interest rates which however will take you a long time to complete your payment, like for example 5% interest rate for 12 months. On one hand, there are those that offer high interest rates which are payable for a short span of time only. Of course, these offers all depend on you and on what type of credit card you are going to get for yourself. Some issuing authorities or institutions offer the so-called reward system. These institutions will encourage you to use your card, this way you will earn point and you can exchange them for items or other promo offers. So the more you use your card, the more points you earn.
There are different types of these cards out; each bank actually has their own offers and promises. When applying for a card, you will enter an agreement with the issuer of the card. That agreement contains everything that you need to know about your credit card and the bank such as the rules to follow, the terms, your responsibilities as the cardholder, your rights and privileges, and so on and so forth. This means that you as a cardholder have every right to use the card according to its purpose.
Although before, these cards are just meant for making purchases, nowadays they can be used for payment of services. You can eat at a restaurant and pay using your card. You can have your car fixed using the same. Most establishments and merchants honor the use of these cards. However, there are establishments that only accept the major card providers. Regardless of your choice of credit card, the main thing that is important when getting one is the fact that you should be able to use the card responsibly.
Your card basically works in this manner: You go to the store, you find something you like, you present your card, the store clerk swipe’s it at the machine which reads your card, the details, the cost of the item you are buying, and then a receipt will be given to you. In essence, the card issuer or your bank, as the case may be, pays the store for the item you bought through that card. Now you will have to pay the bank for the cost of the item. The bank will send you notice of your bills, credits, the interest rates and when you should pay them.
Yes, there are interest rates for your credits every time you use it. This is how banks earn profit from your card. Different banks offer a variety of interest rates for your card. There are low interest rates which however will take you a long time to complete your payment, like for example 5% interest rate for 12 months. On one hand, there are those that offer high interest rates which are payable for a short span of time only. Of course, these offers all depend on you and on what type of credit card you are going to get for yourself. Some issuing authorities or institutions offer the so-called reward system. These institutions will encourage you to use your card, this way you will earn point and you can exchange them for items or other promo offers. So the more you use your card, the more points you earn.
There are different types of these cards out; each bank actually has their own offers and promises. When applying for a card, you will enter an agreement with the issuer of the card. That agreement contains everything that you need to know about your credit card and the bank such as the rules to follow, the terms, your responsibilities as the cardholder, your rights and privileges, and so on and so forth. This means that you as a cardholder have every right to use the card according to its purpose.
Although before, these cards are just meant for making purchases, nowadays they can be used for payment of services. You can eat at a restaurant and pay using your card. You can have your car fixed using the same. Most establishments and merchants honor the use of these cards. However, there are establishments that only accept the major card providers. Regardless of your choice of credit card, the main thing that is important when getting one is the fact that you should be able to use the card responsibly.
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