Speaking about the western world, the credit card facility is now available even to the students of higher education. The society is well taught about the concepts and uses or misuses of credit-card. Being a part of the social setting of these countries, the credit card is a much-used facility.
However, in Pakistan, the concept of credit card is still in its early stages. People are accepting the concept and the facilities offered by the product and are thus getting themselves credit cards that suit their budgets and needs. From a job holder to a freelancer in Pakistan, all are now looking forward to having a credit card to help them in their hard financial times. However, the Pakistani community is still with limited knowledge on using a credit card. This is the reason why we have compiled a set of most needed information that is required to be kept handy, if you are a first time credit card user, you will need to keep these points in your mind to ensure a secure use of the facility offered and not to fall in the black hole of debts.
Being a credit card user, below are the points that you may wish to have known in the first place, to use the credit card in a better way.
First comes the understating about how this financial product works. In simple words, when you buy something with your credit card, you actually pay for it later. It is unlikely a debit card that immediately deducts money from your bank account. While buying with a credit card you actually owe to the bank rather than owing the store. The banks are the one that offers loans to the users for immediate use of the facility to pay them off later.
Thus the credit card will work for you in case you need to change your car tires now, but you are out of cash. With the help of a credit card, you can get things done when you need and pay for them later when you will have money in your pocket/account.
However, it is dangerous if you start buying more than what you can actually pay off. Because no credit card will offer you the loan for more than one month which means that you will have to pay off the amount that you have lent from bank on monthly basis. If you are unable to do so, you will have to pay an additional amount in terms of interest or fee, apart from the actual amount that you have lent from bank.
If you are good enough to stick to your budget and are able to secure a considerable amount in the name of savings, you may not need a credit card at all.
However, one good reason for having a credit card is that you need to build up a strong credit of financial profile. Although the credit score is not the only contributing factor to your financial profile, it does count much.
If you are looking forward to taking some bigger benefits or help from any financial service providing company in coming future, having a credit card with wisely used services can be of great help. You can use the credit card to make payments and then pay them off responsibly, and things will work magic for you. A good score will have an impact on the chances of getting a loan for your home or apply and get an auto loan successfully.
On the other hand credit card also offers a better level of security as compared to cash or debit card. For instance, if you lose your wallet, you can cancel the credit card easily and can dispute any charges that you didn’t make. But if you lost your cash, it is probably gone forever.
Here are some of the expert suggested tips to keep in mind while you are opting to use your first credit card wisely.
Using a credit card is a skill anyone can have, However, self-control is the key to use from a credit card. If you are able to keep a control on your spendings, you can use the credit card and can earn benefits.
This post was last modified on September 27, 2018 9:12 pm
Health insurance is an essential financial safety net that protects individuals and families from the…
Traditional insurance companies are not always the ideal examples of excellence in customer service. They…
Insurance planning is part of a long-term retirement strategy. However, managing insurance and its expenses can…
Life is full of uncertainties, and a very challenging event to deal with is the…
Economic uncertainty has become a recurring theme in the current world scenario. As consumers, we are…
Suppose you have a side gig driving for a company like In Drive or Careem.…