What should you know about credit cards?

Updated: Sep 21

Credit cards have been becoming more and more popular. Many financial institutions, insurance companies, and others integrate their products into credit cards. The easy availability of credit cards poses a challenge for people relying on credit cards all time and creates other opportunities and chances for increasing debts. Many surveys suggest minimizing credit card dues to hefty interest charged on late payments and impacting credit scores.

Cash advances

One of the ways credit card providers make money is through cash advances. A cash advance does not only mean that you take out cash, but it will also consider a cash advance as you transfer money from a credit card to your account or another person. Any transactions that do not involve shopping would be considered cash advances. Shopping examples are buying groceries, vehicles, travel tickets, paying utility or phone bills, etc.

Avoiding interest charges on credit cards

As we get busier, we often miss or trap of delayed payments. The credit card provider does not appreciate your business instead of taking advantage. You can manage credit cards the way so that you may not be charged with interest or impact your credit score.

Pre-authorized payments

Interest charges will incur upon late payment or non-minimum payments. Pre-authorized payment is a great way to avoid interest charges on any account or through credit cards or the credit card payment itself.

Overlimit fees

The credit card has charges on over-limit fees, and this is again a fee charged by the bank if the card is used for an amount more than credit limits. The credit card has the facility locking over the limit to avoid this, so once it shoots over the limit, the card payment does not go through and prevents payment.

Credit cards renewal

Every time credit card renewal occurs, the suggestions mentioned above must be taken care of; otherwise, you will have interest charges.

Credit cards Acts

There are credit card acts in every consumer bureau for protecting credit cardholders. If you have charges due to any late fees, refer to your credit card acts. You may have protection if credit card providers fail to provide bills 21 days before the payment due date. If credit card terms changes took place and credit card providers fail to inform customers before the 45 days notice, you can go back and reclaim those charges. The credit card acts and the terms change frequently, and so, whenever you receive a letter informing credit card terms changes, do take a look.

Credit cards terms and conditions

The credit card changes may impact the services provided from one credit card to another. You enjoyed the benefits of air miles, towing vehicle service, or maybe hotel discounts, but in new changes and those things do not cover, you would not know until you review the terms and conditions of credit cards.

What should you know about credit cards?

Wassiyyah inspired many people to save them from paying interest. Wassiyyah is not anyway encouraging people to take on credit or debt. There are many adverse consequences of taking on liabilities without thinking. Sometimes, you may realize the fact, but only after taking on debt, and that's why we are giving some tips to pay off debt faster to save you from interest.

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