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Wednesday, April 20, 2022

Credit Card vardan Ya abhishap

Billionaires also get a credit card, even when they don’t need it…because there are some secrets about Credit cards..that can help you get rich..and by the end of this article, I am going to tell you those secrets


3 Disadvantages of using a Credit Card 3 Advantages

I’ll give you a Bonus Tip to help you understand how to use Credit Cards.Let’s begin So, you know what a debit card is right ?

It’s a card that deducts money from your bank account every time you use it.But using a Credit Card is like taking a quick loan from a bank and you have to repay back this money to the bank within a billing cycle, which is usually for 50 days.These 50 days are your interest-free period. Does it mean you can spend 10 Crores using a Credit Card on your first day ?

Not really. Your Credit Limit, i.e how much can you spend using your Credit Card is decided by the bank, based on your... Income level, Credit Score… so on and so forth. So basically, CREDIT Cards give people money that they don’t have. And that creates problems.

Problem 1 :  They Promote Impulse Buying.Every website you go to, will show you an adv. Infact, you must be seeing one right now. It’s not wrong to buy. But when we are not in a good place mentally, just to get a quick buzz, we buy shoes we don’t need or that 5th Game of Thrones T-shirt that just lies at the back of a closet. This kind of impulse buying is pushed further when you have a credit card, because with a Credit card you don’t have to pay now, you can pay later.So, if you already have these emotional issues to resolve first, then credit cards might not be your friend.Infact, comment below and tell me what was the last purchase you made that you regret ? Was it a midnight ice cream or a T-shirt you already had or shoes you didn’t need.

Problem 2 : They put you in a lot of DEBT. Interest Rate of Home Loans... is around 8%.Car Loan.. around 10. Personal Loan… around 12 Do you know what’s the interest rate of Credit Cards ? Between 24 to 42% per annum. if you pay back the money to the bank within your billing cycle then okay… 0 interest. But if you default by just one day, then here’s what happens.You have to pay interest not just for one day,but starting from the day you made the transaction.Assuming you made it at the start of the billing cycle then your interest is on 51 days, not just 1 day. Late payment charges will be applied.You have to pay 18% GST on the overall interest accruing. And God Forbid, if you make a new transaction, before paying off this old amount, then this new transaction won’t have any interest-free period and it’ll start attracting interest from Day 1.Apart from these payments, 2 solid ways that Credit Card companies make money are this…

If you withdraw cash using your Credit Card,

then you start paying interest right from Day 1. Credit card companies tell you... 'Oh, so you have to pay 50,000 this month?.. Don’t worry.. just pay 5% of it .. i.e the minimum amount due..and you won’t be charged a late payment fee.' You think it’s a boon, but it’s not.Because you will still end up paying high interest rates on the remaining amount.So the day you get your Credit Card, Swear to God that no matter what, you will pay your dues on time, because if you don’t…