How Much Can You Trust Credit Card Companies?
There are all sorts of credit card companies out there, and each one comes with its own products and offers. Although most of them are reliable banks, what matters most is to understand the operating principles of such a card and how you can use it in your favor and not in the favor of the issuing bank.
The credit card is a line of credit that the bank grants for its customers. Each bank has minimum and maximum limits of granting, and most of the times, the credit line is offered according to the owner’s salary.
Owning a credit card can be very helpful if you keep it under control, meaning that you pay your installments on time, or put back the entire amount used during the grace period. If you do this, you will not have to pay any additional cost (only the standard administration cost).
Things you should avoid, if you can:
- Do not withdraw money from the ATM (there will be a withdrawing fee, and, in some cases, the interest is charged from the first day of withdrawal)
- Do not use the money on your credit card to pay off other debts
- Do not pay the minimum payment amount (this is only to prevent your credit card from being blocked; as for the rest of the amount, the interest will keep flowing.
Most banks intensively promote the idea that, if you pay by credit card, you get back a small percentage of your purchase. But if there is no firm agreement with a vendor, usually the amount is very small and you risk paying interest, so there may be no point in going for it.
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