Credit Card Basis – What You Need To Know

10th February 2017

A credit card is a card used to enable cardholders to make payments towards merchants for goods or services. The bank who issues the card grants the cardholder credit from which he/she can borrow money to make payments and pay it back over time while still having a balance of the debt. Whether your credit card will be helpful or harmful to you all depends on the knowledge you have regarding it.  Before you decide to get one, there are a few basic things you should know regarding credit cards. Read on to find out what they are! Here we will have a look credit card basis.

Your Credit Card Contract Is Binding – Credit Card Basis

Credit Card BasisThe issuer of the credit card will have set terms which will require you to sign an agreement. Read through these very carefully since you will be forming a legally binding contract once you sign it. Some of these terms can include the credit limit given, the number of days you have available to pay back credit before interest is added, basic fees for having and using the card, all interns charged and how this interest is calculated, etc. Make sure to check for frequent updates regarding this as the issuer has the right to change these terms.

You Still Have Rights – Credit Card Basis

Even though the contract you sign is legally binding, you still have rights. The card issuer has to treat you fairly and explain all terms in the contract in detail in a way and language that you understand. You may ask questions when something is unclear and lay complaints when it is necessary.

There Are Different Types of Credit Cards Available – Credit Card Basis

It is critical to compare credit cards. Banks issue credit cards, retailers, credit card companies and credit unions. You can use general purpose credit cards anywhere while you can only use private label cards at the retailers who issued the card. Make sure that you understand the terms and details regarding each card specifically as all of them may differ.

Added Benefits  

Make sure you understand all the other added benefits that are provided by the card issuer. An example of one of these benefits can be an automatically extended warranty if problems with your purchase occur. Reward programs can also be available. These can include but limits not to, sign-up bonuses, airline miles, cash back rewards, grace period interest rates, etc.

There is no secret or set guide to choosing the right credit cards or using one wisely. But keeping a few basic in mind will take you far. Look for a card with low fees and good reward programs. Be sure that you understand everything regarding your card and ask questions when you don’t. By doing this, you can come out ahead when making use of your credit card!

All info was correct at time of publishing