“The Truth Behind the Credit Cards “

In this article , i am explaining some factors or some points about Credit cards which tells the truth behind the Credit Cards.

What is a credit card?

A Credit card is a plastic card issues by financial institutions with some limits by which you can spend that money on foods ,shopping etc. . Now a Days it is widely used by people across the world for doing payment. we thought that credit cards are very useful but actually we don’t know the truth behind the credit cards.

Do we really need a credit card or not?

ya so some will say yes and some will say no and it is true at sometime we really need a credit card and but we did not use it properly we will got trapped by the credit card.

Lets take an example we book a ticket of airlines through credit card and going to goa what if that flight will cancel and you are not so financially strong? if we are using credit cards at stupid activities , no one is dumb as we.

s.

“Credit Cards are the crack cocaine of the financial world”https://neweralive.na/credit-cards-are-crack-cocaine-of-financing/

-Scott Adams , of Dilbert

There are points which reveals The Truth Behind Credit Cards

Interest and Charges on Credit Cards are 40% – 65%

Some banks has admitted that their interest is as much as 70 but i have kept an average 40 to 65 that is the kind of interest that you’re paying okay, so don’t think that you are paying only 20 to 25% charges as they are pretending for taking 25% charge. so choose properly.

Roll over the credit

what people don’t know about credit cards and why it becomes like the crack cocaine is that if you have rolled over money once . okay don’t touch that card again until you’ve repaid everything . it’s a mistake that everybody makes because the minute you have rolled over something then every single spending after that is added on to your total and this high interest is charged . there is no free looking period many people are under the impression that i buy something today it has 40 days i buy something tomorrow . it has another 40 days no such thing there’s a billing cycle if you buy at the end of the billing cycle you may have two days you may not even get that whole 40 days . okay ,

Cash Withdrawal from Credit Cards

If you are using a credit card for cash withdrawal it is just like an atm. But what people don’t know about this system as you withdraw cash from credit card bank will start charging interest from that minutes. Bank charge high rates till you make repayment of your credit card. It is just like a loan with higher charges of interes

Offers to preferred customer offers

At this point what bank do , there are two factors first is phycological factor bank offers platinum card to gold card users and give high limit than elder card , so here people think that they are getting more money by using platinum card but what occur as high limit is given people use high limit and hence they will charge more interest . second bank will transfer whole series of people gold card to platinum card, bank is not worried about you because you will fit into one of these category and got trapped.

Read More Articlehttps://cashflowz.in/how-banks-became-the-titans-of-finance/