What Is A Credit Card? Complete Guide For Beginners
cta news
by: aman
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What is a credit card?A credit card is a sort of credit facility that banks offer to consumers to enable them to borrow money up to a pre-approved credit limit.
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Cards are used to buy goods and services, the issuer is lending you money for the transaction, and then you must repay it.
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If used wisely, credit cards provide convenience, consumer protection, and a rapid way to establish good credit.
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If you use them carelessly, your credit may suffer, which will have an impact on your future opportunity to borrow money.
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Credit LimitThe spending cap on a credit card is known as a credit limit, which is set by your bank. Your credit limit is determined by your income and other debts.
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Credit scoreA credit score is a rating that banks and credit card companies can use to assess your creditworthiness and can range from 300 to 850.
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Advantages of Credit CardsCredit cards are convenient to use. You have the option to buy now and pay it off later. On regular expenses, you might receive rewards.
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Disadvantages Of Credit CardsCredit card debt can result from making purchases you can't afford to pay off. It's possible that some merchants won't accept certain cards.