Hello, Let’s understand what credit card means.
It is nothing but a loan of a specific X amount taken from the bank where it charges for using that money.
Well, if you know about this, great!
What is the difference between Credit and Debit card?
A debit card is nothing but a plastic card that is given to a savings or credit account holder by a bank.
When you use or swipe a debit card, the money will be cut from your bank account.
There are different ranges of debit cards, some will be given for free (which are having no different offers – often called as classic) and some will be given for minimal annual amount with a wide range of offers.
This goes for credit card too. But you can’t see anything like free here.
Do you know how much bank charges from you?
Even though, the card that you are using or going to take came for free? Then you should have to read further more information on how banks are cashing your hard earned money.
1. Credit card will be given to people who are getting pay slips or who is earning a certain amount per month.
2. Based ones income, the limit offered by the bank varies.
3. There are different types of plans, where there will be different types of charges.
If any bank employee called you and said that we are giving a credit card for FREE! Don’t trust him, because we have to pay annual charges for a credit card that we are using.
Before taking a credit card, I ask you to look at different types of charges for using that card on the bank’s website and don't forget about GST if you are from India.
Always remember there will be this *.
*Terms and Conditions Apply.
I will give you an in detail description about how charges are given for a credit card with one example in my next post.