In the past, people only use cash to purchase something whether it’s a product or a service. This is because other modes of payments like credit cards were not yet available before. But now, times have changed and because of the presence of credit cards, many people are taking advantage of the benefits of using such cards. Basically, a credit card is a kind of card that is usually issued by banks, retailer, etc. which can be used to purchase different types of products and services without using cash. But before you apply for a credit card or use it, there are some things that you should be aware of first. You have to be familiar of the concepts and terms of using one.
First on the list is the annual fee. These cards are available in different types with different limits and interest rates but most types require you to pay an annual fee. The annual fee refers to a certain amount set by the issuing bank which will keep the card active even when not used. But this does not apply to all types because there are those that do not charge 신용카드현금화 any amount. Another thing that you should be aware of is the credit limit. Every credit card has a particular credit limit which is also set by the issuer according to your income, you age and your repayment capacity. When you apply for a credit card, there will be a maximum limit that you have to stick to. If you go over your limit, the transaction can either be rejected or you be charged for overdraft penalties. But depending on how timely you pay your payments, your credit limit may be increased.
It can also be used like a debit card or ATM card. You can get cash from a particular bank or ATM as long as you do not go over the set cash advance limit. Just like credit limit, cash advance limit is also set by the card issuer depending on your income profile. But unlike using a debit card where you get the money from your savings, withdrawing cash using a credit card would automatically mean that you are taking a loan from the bank who issued the card and it would be subject to different charges which are really high. There will also be an interest that will be accumulated from the day you withdrawn the money until you pay it.
After using a credit card, you will have to pay a certain amount within a repayment period. Most of the time, the repayment can be done 3-4 weeks from the date on the credit card statement. This means that you have enough time to pay your dues. But when you fail to provide the payment within the set period, you will be charged for APR (annual percentage rate). This is what you have to pay for you outstanding balance that is beyond your due date.