Credit cards are the necessary evil. Everybody at some point has experienced the following situation. You are walking down the street and then suddenly you spot something really amazing on the window of a famous boutique shop.
However, when you look at your wallet, it is empty. That is why you take out your credit card and with relief, you buy the desired product. Credit cards allow you to borrow money from the bank. At the end of each month, you have to repay the whole amount.
There are some things that need to be pointed out when speaking of credit cards. They are useful; nevertheless, they might someday ruin your life because you have used them too much.
Top 25 things to consider when having a credit card
- Annual percentage rates (APR) are the most important feature of every credit card. It is the interest you pay each year to the bank. The interest is based on your borrowing. If you have spent a lot of money then the interest will be higher for you.
- The introductory rate is something that many people consider unimportant. Usually, everybody starts with low or 0% introductory rate. This is good because you will not be charged for using the credit card.
- Everybody wants to get their hands on a gold, platinum or premium credit card. These two cards are not given randomly. You have to be really rich and at the same time a big spender. There are some benefits of using a card like that because the interest will be less.
- Always consider the grace period. This period is also known as the interest free period where you will not be charged for using the card.
- Balance transfer rates come in handy if you want to transfer funds from one of your cards to another. That way you can save a lot of money.
- Late payments are another feature which are important to be pointed out. This is the time when the interest gets higher. The reason is because you have not paid for a long time. It is really crucial always to pay your bills on time. That way the bank will be always happy with you and they will consider you valuable customer.
- Let's us put an end to the banking stuff. Let's deal with more interesting and entertaining things about credit cards. Did you know that there are collectible credit cards? Of course they are not used to withdraw money. They are collected because of their numismatic value. People that collect them are interested in everything: size, shape, pictures, tokens, material used, and etc.
- Also, did you know that you must have an approved account? Otherwise, you will not get your card.
- After you receive your credit card, have a look at the pictures and signs on it. The credit card always has the logo of the bank which holds your account and also some other pictures.
- You will notice that your credit card cannot be used without a Personal Identification Number (PIN). This is your personal code which allows you to be the only one person who can use the credit card.
- There is another code which is gaining popularity -- CNP code. This code is useful if you want to withdraw money from the internet.
- Through electronic verification, instantaneously, your account will be checked if there is enough money.
- With the help of a Point of Sale (POS) system, you will get the money in cash. It will be available to you to make your purchases.
- There are little known features such as the pre-paid credit card. That way you can spend the money you have previously stored in your account.
- Pre-paid credits cards do not require having a pin.
- The card limit is the thing that bothers us all. It is the maximum amount of money which you can withdraw for a period of time. After you pay it off, you can withdraw again.
- The card limit might be increased if you prove to be loyal customer and client to the bank.
- The security issues are many when it comes down to credit cards. Making a duplicate is not hard for the expert thieves. However, the pin is the thing that makes their job tough. When they obtain it, it is easy to withdraw money from your account.
- There are several security standards which are running in order to prevent that. One of them is PCI SSC also known as "Payment Card Industry Data Security Standard".
- If you get your credit card stolen, do not waste any time and call the bank to freeze your account. Otherwise, you may end up with huge bill in the bank.
- The black market is fully operational and one of the essentials there are the stolen credit cards. Be careful not to become the next victim of this market.
- An interesting thing to point out is the code 10 calls; they are used to point out that the merchant is suspicious about the customer's credit card.
- Credit cards played a huge part in the history of credits in the world.
- Credits cards boosted the economy as well. Their help managed to put the world's economy in motion.
- Credit cards may save you one day.
Credits cards are useful thing to have, especially when you know how to handle them properly. Also, they are very dangerous in the hands of an inexperienced person.