Credofly’s experts have extensive hands-on experience with using and optimizing credit cards. We take a comprehensive approach, considering various factors to identify the best options on the market—those that ultimately provide the most value to you as a consumer.
Pros and cons of credit cards
Regular, responsible use of a credit card helps build a positive credit history
Credit cards offer rewards like cash back, travel points, or discounts
Credit cards are widely accepted, making them convenient for both online and physical purchases
Credit cards can serve as an emergency fund for unexpected expenses, offering immediate access to funds
Missing a payment or making a late payment can result in hefty fees and even damage to your credit score
Having a credit card can tempt some people to spend more than they can afford
If you don’t pay off your balance in full, credit cards typically charge high interest rates
It’s easy to overspend with credit cards because of the “buy now, pay later” mentality, leading to significant debt
Our experts bring you unbiased credit card reviews, answer readers’ most pressing questions and provide the latest news. Whether you’re looking to earn cash back, collect travel rewards or build credit, find the right and best credit cards for you.
What Is A Credit Card?
A credit card is a financial instrument that has a pre-loaded balance that the cardholder can use to make transactions and pay for them later. The card issuer will let you pay off the balance fully, interest-free, for up to 50 days from the date of payment. To avoid any fines, the cardholder can pay the minimum amount due (which can be anywhere between 5% to 10% on the total amount owed). The balance, however, will be carried forward to the next month, and interest set by the credit card company will be levied.
Why Get A Credit Card?
Let’s start from the beginning: Why should you get your first credit card, let alone a bunch of credit cards? Credit cards sometimes get a bad rap, but they are a tool you can use to build credit, earn cash back, earn travel rewards, or get access to other really cool perks. The key is using credit cards responsibly.
How does A Credit Cards work?
A credit card gives you more time to pay for your purchases. Every time you purchase on your credit card, you are in effect borrowing that money from the credit card issuer until you pay it back at the end of the month. Here are some things to know before you get your own credit card
Credit card companies give credit cards to individuals who have a consistent income
If you have a good credit score, you can get a credit card easily
You can obtain a credit card against your fixed deposit.
As a credit card holder, you will be allocated a credit limit, which will be 3 to 5 times of your net monthly salary. This will vary across different banks.
Although a credit card is provided by popular banks, the payment gateway is facilitated by Visa, MasterCard and RuPay. However, these payment facilitators cannot set other terms and conditions on the card. Features such as minimum due amount, interest rate, reward points, etc., are fixed by credit card issuers.
