Question

how do you Choose the right credit cards and recognize their advantages and disadvantages.

Answer 1

Credit cards are plastic cards issued by banks and other financial institutions , which enables the card holder to purchase goods or services from a seller even the he or she does not have money.Card holder will use his credit card while purchase and the cash will be paid by the issuing bank or financial institution directly to the seller.Here holder have to repay the amount he spent on purchase along with certain charges to the issuing bank or financial institution.There are different type of credit cards.One should be very care full while selecting credit cards.Right credit can be selected by considering the following steps.

1-You have to be frank and honest about your financial needs and habits

2-There will be fake promises by the institution about the cards and its offers ,do not go for the fake advertised offers

3-Choose card which offers more bonus rewards to you

4-Get the card which offer balance transfer with zero charges

5-Choose cards offer travelling insurance

6-Choose which offers a travel credit card option

7-Select cards with minimum payment option

8-Choose cards with less interest rates

9-Choose card which provide sign up bonus option

So you have to consider all these options and select a right card which provides you all these benefits.

Advantages of having a right credit card

1-Increasing your purchase capacity

even though you do not have enough money ,you can easily purchase your urgent goods and tackle the emergency situation.

2-Do not have to carry money

you can easily buy with carrying liquid cash and needs will be completed.

3-It enables you buy now pay later scheme

if you dont have huge money to make purchase of home appliances then you can use your credit card and you can repay this debt on a monthly installment basis.

4-Benefits and rewards

many credit cards offers different benefits and reward to its holders while they make the purchase through the credit card. its beneficial to the card holder/

Disadvantages of credit card

1-Causing to the increase of debt

when you get the assist of your card while you purchase goods and services,you will not think of the amount which you spent. you will loose your limit and purchase whatever you want by using credit cards that will lead to more debt.

2-Charges and fees of credit card

there are some credit cards which charge high charges or interest on the card holder. that will become a burden to the card holder

3-Limited usage of credit cards

you cannot use your card in all the time and all the places.sometimes there will restrictions to use credit cards and in such situations you have to carry cash as well as credit card. that is a difficulty for the card holders.