Well, they’ve said that money can’t buy happiness, but perhaps credit cards have come pretty close to fitting that bill. With its growing importance in many countries across the world today, credit cards are now more than just plastics taking up spaces in our purses and wallets or even digital wallets…it’s accessibility, it’s convenience, it’s ease. However, understanding how credit cards interest works is definitely important.
- Interest is what the credit card companies will charge you for borrowing their money.
- These companies will charge interest on your unpaid balance and combine that with your new balance.
- The balance on your credit card will be multiplied each day by a daily interest rate and then combined with what you owe at each billing cycle. Ensure that you read the terms and conditions for information on how the daily rate is calculated.
- Interest rates on credit cards differ which is why it’s always a good reason to look around before choosing a credit card.
Now that you’ve gotten your hands on your first credit card, it’s time to use your card responsibly. Here are a few tips on how you can do just that:
- Always protect your PIN – credit card fraud is a real and growing issue.
- The interest rate and fees on a lot of credit cards will change from time to time, so always keep up.
- Always check your bill, so you know exactly what you owe and when to pay.
- Create a plan to pay the full balance of what you owe monthly.
- Always try to avoid late payments and overlimit fees.
- Staying within your credit limit is always the best option.
- varying interest rates depending on the transaction types– know them!
So, while the bills can come around with a certain haste and urgency, part of your financial goal should be to pay your credit card bills on time, and in full every month, and to also seek out the most competitive offerings, like the VM Visa Gold and Visa Platinum credit cards.
To get your hands on one of those, all you need to do is click the link below to apply!https://vmbuildingsociety.myvmgroup.com/personal-solutions/credit-card-solutions/