A credit card allows you to obtain money to pay for products and services with the promise of repaying the card provider at a later date, usually with interest. Credit cards provide you with a line of credit that you can use for purchases, debt transfers, and cash advances, with the requirement that you repay the loan amount over time. When paying using a credit card, you must make at least the minimum payment each month by the balance’s due date. Ikano Bank offers a credit card with attractive offers.
Difference between a Credit and a debit card
When you use a debit card, the money for your purchase is nearly immediately deducted from your checking account. When you pay using a credit card, the amount is charged to your line of credit, which means you’ll have to pay the bill later, giving you more time to pay.
Credit cards are neither beneficial nor detrimental, and they are financial instruments that require to be handled with caution. If you don’t utilize credit cards appropriately, they might assist or destroy your money. Credit cards, when used properly, provide a handy payment mechanism that can help users develop credit and earn rewards.
The maximum amount you can spend on your credit card at any given time is known as your credit limit. The credit card company sets the limit. It would be best if you tried to spend roughly 30% of your credit limit and never exceed your credit limit. As a result, you will have a decent credit score.
A credit card can be secured, in which case a cash deposit is required, or unsecured, in which case no deposit is required. You can receive a credit card with no credit or bad credit, but you may have to pay a higher APR and fees.