What is credit card? How to use credit card? 5 things you should know before using credit card

What is credit card? Do you have credit card? 

Do you want credit card? What are the benefits? Everything about credit card

First we should know what is the difference between credit card and debit card. 

Debit card is directly linked with your bank account. If you have 5000 rupees in your bank account so you can only spent 5000 rupees only for any reason and money will automatically deducted from your account. 

But credit card doesn't have any connections with your money in your account. Credit card gives you money limit on the basis of your salary or if you have any business then the annual income helps to decide the limit of your credit card. For example credit card gives you limit of 1lakh rupees so you can spent 1 lakh from your credit card whether your account balance is zero. This is why it known as credit card.

Now the main question is What is the advantages of credit card? When we will repay money to the bank?

Now the main benefit of credit card is you will get interest free money approximately 20 days it depends on bank to bank. So your bill generate on 1st day of the month you will get 20 days to repay your money without any interest. If you use debit card then money will immediately deduct from your bank. Here you can see if you have money in your account then you will get interest also from bank and you don't have to pay any interest on credit card also.so this is the key benefit of using credit card

So 5 things you should know before using credit card:-

1. Interest free loan:- you can spent money without any interest. 

2. Avoid fraud transaction:- sometimes we give our card information to various websites to buy products.Your account number and card information can be hacked. So you can use credit card without any hesitation.

3. Improves CIBIL score:- if you are using credit card and you repay your money with in time then it also improves your CIBIL score. So you can get loans easily from bank. 

4. Recurring payment:- every international websites accept credit cards. So we don't have any tension. And you can also use credit card for your recurring payments.

5. Use during emergency:- if any medical or financial emergency occurs then you don't have any tension.  You can use credit card for paying hospital bills etc. For more updates click this link http://mudrainvest.com