A VIDEO GUIDE TO CREDIT CARDS HOW TO USE A CREDIT CARD TO YOUR ADVANTAGE HOW TO AVOID PROBLEMS

hello and welcome to solution loans this short video comes a guide to credit cards credit cards are one of the most flexible forms of finance and are used by millions of people worldwide every day every time you use a credit card whether you are buying something withdrawing money from a cash machine or making a payment you are borrowing money from a finance company they are not the same as debit cards which are used to pay for goods and services by withdrawing money from your own personal bank account the flexibility that credit cards provide come from how you manage your repayments a cardholder can choose to repay the balance every month meaning that they will not face any interest charges or they can roll over the balance and make only the minimum repayment or a large part of the balance so how exactly do credit cards work when you successfully apply for a credit card you'll have access to a predetermined credit limit you'll be able to use the card at any shop merchant or trader which displays the Visa or MasterCard logo you can continue to use your card up to your credit card limit provided that you make at least the minimum monthly payment the flexibility that credit cards offer comes from the way that the repayments work a cardholder will generally receive a bill and be given a set amount of time to make a repayment which this can be up to 45 days after the card was used if you used this to repay the entire balance of your card then you're in effect taking advantage of a month and a half of interest-free credit this does not include cash withdrawals made on the card which usually attract a cash advance fee and are not included in any 0% office so why would someone apply for a credit card if you use a debit card a lot you may find that there are more benefits from using a credit card if you are sensible and repay what you owe on it every month not only we get to 45 days of interest free credit but in a lot of cases your purchases will be protected under section of 75 of the Consumer Credit Act this stipulates that credit card issuers and retailers take joint responsibility for 40 per so should you pay for something on your credit card valid between hundred and thirty thousand pounds your purchase will be protected in the event that is faulty or if you do not receive the goods or services that you've ordered in such cases you may be eligible for a refund from your credit card provider credit cards can also be a good way to repair your credit rating or build on up if you have not had any form of credit before there are credit card specifically designed to help people with less-than-perfect credit ratings many card issuers offer an or % transfer deals where you can transfer an existing balance onto the card and not pay any interest on that balance for the first six or twelve months so you're probably wondering what are the downsides it's very tempting when you first receive a credit card to think that you've suddenly come into a large amount of money and go on a spending binge that you can't really afford this is a surefire way to run up a large debt which would be much harder to repay and could lead you to financial difficulty very quickly it's also very easy to pretend that your card balance doesn't actually exist and that the card is only costing you the minimum repayment each month if you do this then you will end up paying a very large amount of interest on your borrowing and you may never pay off the balance at all every card provider will make clear that it's much more sensible to make a large payment than the minimum one required each month this way you are constantly reducing the outstanding balance and pay much less in interest charges probably not to use your credit card to withdraw cash because not only will this incur an advance fee but most providers charge a higher rate of interest for these transactions so in conclusion as long as you clear your balance every month a credit card can be a flexible and cheap way of borrowing money in the short term credit cards can also protect you through the consumer credit act where you can reclaim money from the card provider for faulty purchases as of any form of credit you must ensure that you can keep up with the repayments and be able to pay off the money you borrow you

As found on YouTube – Creative Commons License

https://creditreportagent.com/credit-cards/a-video-guide-to-credit-cards-how-to-use-a-credit-card-to-your-advantage-how-to-avoid-problems/?utm_source=rss&utm_medium=rss&utm_campaign=a-video-guide-to-credit-cards-how-to-use-a-credit-card-to-your-advantage-how-to-avoid-problems