10 Things You Need to Know About Credit Cards

credit cards

We as a human have uncountable wants. And we thrive to attain some of our desires at best.

However, not everyone is capable to scrape their wallet and steal tokens of happiness.

At moments like this, we wish for some bonus from our company or a raise in the salary.

Reaching the ability can take a long time and promotions can take years of years to come.

So, when no medium works should we just give up on our dreams? Well, how about a credit system?

Your debit card might not make all your wishes true but a credit card can.

But be aware, if you are not a disciplined person, credits might not be the best option for you.

Credit cards are like One Time bonus. However, this bonus needs to be repaid with some interests.

If you are planning on applying for a credit card or already own one, you should know these 10 facts about credit cards.


A wise option is to get your credit card from the bank you already have a history with, that is, you already have an account with.

But, you should compare the available options and learn about each bank’s credit system.

You should know the interest rate, credit amount and credit system of the issuer.

Then choose the one that fits your preferences and your credit appetite.

Interest rate on Credit Cards

The first query in anyone’s mind related to credit card is about the interest rate that you have to pay back the amount withdrawn.

The interest rate differs based on the issuer. It can rage anywhere between 0% to 30%.

You should be wary of the interest rate and credit amount issued.

Everyone wants good credit amount with low-interest rate.

Use Credit Cards wisely

You must evaluate what kind of expenses you are going to meet from your credit card.

However, using it lavishly and not keeping your expenses in check can put you in a tough position.

You might end up paying off your credit card bills for years and years to come.

So be wise about swiping your credit card.


EMI is a great way to make a big purchase.

You can make a purchase and keep on paying the amount monthly thanks to your credit card.

The amount will be deducted monthly from your credit card, however, you should remember to pay your credit card bills on time.

Using the Credit card

Having a credit card and maintaining it by norms strengthens your credit history.

This also enables you to get a relatively easy pass on future home loans.

But, if you get a credit card, you should keep on using it. Even though the transactions are minor, you should keep it active.

Also ReadWays to Get Freedom from Your Money Problems

How many Credit Cards you should have?

You should know what type of credit card you need.

If it is for retail purpose, there are cards issued for those purpose with suitable credit system.

If you want to make general purchases, there are cards according to that.

Therefore, a person might have more than one credit card.

There is no limit on the numbers of credit card you should have. You should only be able to pay all your fee or interest (if any) on time and don’t drown in debt.

What about credit cards fee?

Some credit cards are charged with an annual fee. This can be charged as an annual maintenance or card renewal fee.

However, not all the credit cards are charged with such fees.

You should confirm it with your issuer whether your card has such charges or not.

This fee depends on the nature of your credit.

If you make heavy transactions from your card, you are bound to be charged with an annual fee.

Your credit appetite

If this is your first time using a credit card, you should be wary of your credit appetite.

Set a limit to how much transaction you can make. Else, you might ruin your credit score and fall in debt.

Even if you are an experienced consumer of credit cards, you should know how much credit you can bear on your financial ability.

Grace period

Late fee and interests are completely avoidable subjects of credit.

This is possible only if you keep on paying the credit amount on time and do not take any amount to the next month.

If you fail to pay the amount on due date, interest will start to incur.

However, grace period is a relief to the people want to keep their credit score clear. Grace period is the time between billing date and payment date.

It is allowed only when interest do not accrue.

This period allows cardholders to clear their credit score and escape interest.

What can go wrong?

You should be aware of hidden charges.

Some issuers do not charge a credit card fee in starting years, but they might start to charge one later.

Therefore, be informed about the credit system and any possible hidden charges.

The Bottom Line

Credit cards are a good way to look for financial well-being.

You can improve your credit history for future references and keep on attaining financial satisfaction in the present.

However, credit cards should be used responsibly.

Managing money and keeping transaction and pay out behaviour in check, you can have a good credit score.

Team R Wealth

Team R Wealth

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