Are you thinking about getting a credit card? We suggest you to read our collection of FAQ’s to get answers to questions you may have about credit cards.
What is a credit card?
A credit card is issued by a credit card provider, for example, bank or other financial institution. Credit cards are mostly used to purchase things in shops or online as well as you can take out the cash from ATM. If you apply for a credit card you apply to borrow money from the credit card provider. Credit card provider will evaluate your credit history and ability to make credit card repayments before your application is accepted. If all is well, credit card provider will set a credit limit - the maximum amount of money you can borrow from your credit card.
What are the benefits of using a credit card?
If you have steady income and are able to make monthly credit card payments, there can be many benefits from using a credit card:
- - Some credit card providers offer you to receive cashback or reward points, vouchers etc. for the money you have spent;
- - Many retailers offer certain discounts when you pay with a credit card;
- - Using credit card overseas can help you to cut costs.
How do I pay for my credit card?
Usually, credit card provider will send you a monthly statement of your credit card spendings and you can choose whether to pay only the minimum + interest or bigger amount of money. However, to be sure, please read your credit card provider's terms and conditions as well as carefully read the contract before signing it to avoid hidden fees and charges. Keep in mind that if you make only the minimum repayment on your credit card each month, you will pay more in interest and it will take longer to pay off your balance. Your monthly statement must give you information about how long it will take to pay off the entire balance by making minimum repayments.
How do I get a credit card?
Applying for credit card is a quick and easy procedure. You can apply for a credit card by filling an online application form on the credit card provider's website. To get a credit card you have to be at least 18 years old, employed, with a regular monthly income and have a bank account. Even though the application is really easy, you shouldn’t rush into getting the first credit card you are offered. Be careful and read all the information, small print, terms and conditions on the politics of financial enterprise, which you find most efficient after comparing all the options in MoneyGuru24.com.
What happens if I can’t make the payments?
If you miss payments or fail to make your credit card payments and cannot reach an agreement on the extension of credit term, then it is quite possible that the credit card provider will leave a bad mark in your credit reference file. This can cause difficulties to obtain credit, leasing or other financial services in the future. Serious cases of missed payments (non-payment) can be brought to court. In this case, the court costs will be added to the amount of your debt.