Getting Started With Credit Cards ----- Takes you Into the World Where Spending Money is Making Money

Main advantages of credit cards.

One, credit cards are billed once a month and paid off 20-25 days after the bill is issued, so all spending levels can earn an extra month of interest on average. The repayment date can also be set after payday to optimize cash flow.

Second, the merchant will give 0.6% of the purchase amount to the bank and other institutions, which is the main source of income for the bank in the credit card business if the user does not install the bill. The bank will also give back part of this income to the consumer in the form of points, cashback activities, etc., in part or even in excess, so that spending money is making money.

Third, credit cards can be bundled with some payment apps, so that daily consumption will be more convenient to use.

Fourth, the credit card will come with a variety of value-added services, including not limited to free shuttle, airport lounge, hotel accommodation, hotel swimming and fitness, golf. The green channel for medical treatment, medical checkup, dental cleaning, chauffeur, airline delay insurance, video membership and so on.

Fifth, the credit card points of some cards can be exchanged for airline miles, hotel group points, etc., making travel more preferential and convenient.

Sixth, the standard use of credit cards can optimize personal credit and accumulate credit.

Disadvantages.

One, all the money spent is to be paid back, the credit line is not your real money, must do moderate consumption, the amount of money.

Two, do not installment, when you finish credit card may receive installment sales calls, in fact, many are outsourced installment staff, they have professional words, installment is also an important source of income for the bank, but because the standard annualized interest rate of credit cards up to 18%, so even if there is a preferential situation, direct credit card installment is not cost-effective in terms of cost.

Third, you need to keep in mind the repayment date, or set up automatic repayment, if late repayment has an impact on credit risk.

The most important: spending must be within your means, learn to manage your credit limit and not be a card slave. Credit cards are just a way of payment, don't turn it into a way of life, and don't let it become a burden of life!