Credit Card - Reality

 

Credit Card - Reality 

                       What is Credit Card ?

The bank gives you a loan within a fixed limit, within which you have to spend and repay it on the prescribed time.

Example : - 

                      Your HDFC Bank credit card has given you a limit of Rs 50,000. You will be able to use it only within Rs 50,000. And you will have to pay the money spent to the bank on time.

                 Where is credit card used ?

Credit card can be used for online shopping on e-commerce sites , flight ticket booking, hotel booking, hospital bill, movie ticket etc.

Benefits of Credit Card

•You don't have to beg in front of anyone at a bad time. 

• Using a credit card gives you cash back and many reward points. 

• You can buy anything on EMI using a credit card.

•  You get many loan offers through credit cards.

Disadvantages of Credit Card 

• A lot of interest is charged on withdrawing money from ATM using credit card. 

• 3 times interest is charged if the credit card bill/spent money is not paid on time.

• By using 3/4 credit cards at one place, you can get into a big problem. 

• Using a credit card without any need can cause a lot of problems.

• Students should stay away from credit cards.

Always use credit card as per need and limit and make payment on time. By doing this you will not face any problem.

Credit card is a trap, if you do not use it properly then you will keep getting trapped in this trap