Nov
26
Credit cards offer you some kind of financial freedom. You can use the cards in case you are out of cash. Thus, you are never out of the purchasing power. Credit cards also increase your purchasing power.
The plastic cards carry an interest rate. Apart from the interest rates, the vendor who accepts the cards, charges some extra fee for processing the transaction. In effect, you end up paying more than the value of the item you purchased. Always keep this in mind. Avoid using credit cards for items of lower values.
Credit cards are easily available these days owing to the competition among different bankers. You need fulfill some criteria to get the card. This criterion is only a formality. Once you get a card, it becomes easier for you to apply for even more cards. More cards mean more purchasing power.
The more cards you hold, the more glamour you command. Many people do not know that using credit cards without any restraint can lead you into a debt trap: one, which can ruin your whole credit record. Also, do you know that these credit cards, though they claim that they have a small rate, carry an interest rate, which is much higher than the unsecured bad credit loans?
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