Thursday, 14 February 2013

how to find a cheap credit card

The heading appears cheaky, isn't it? Yes, it is infact that is the intention because most of the credit card companies are very cheaky, they want people to spend more money via there distribution channel.

To save our money while scratching our credit cards, firstly we need to ask why on the earth banks are providing credit cards by saying you can use the credit limit with out charging any upfront cost, but at the same time when apply for a personal loan there will be upfront cost involved? because basically banks will not approve credit cards to people with the poor credit history (click the link to find why it is important to check your credit history).

It is simple because poor credit history means low income profile or with bad financial behaviours which means you can't afford to repay the money in time. Therefore, banks want to attract customers who can afford to repay the loan but not as a complete repayment. Here is the tricky game play by most of the banks providing credit card services.

If you mis a payment then first comes first, late charge fees? what is this? it means if you happen to mis any payment then this will bite you with over due payment or late charge fee, then next your credit history will have the consequential impact which means you will lose some credit scores. Infact banks would welcome the customers who would likely to mis thier payment but will be prepared or can afford to repay the money or the minimum payment. On the top, a higher interest charge will also incure of your overdue  balance and so on. So be it, the delay in repayment or repaying only the part payment or repaying only minimum payment that is where the banks can get thier maximum benefit from the customers.

There are a few banks that would provide very generous amount of credit limit to thier account holders, with a very good credit history or income etc, but any how beware of what I have mentioned above and act wisely; because it is always "better be safer than sorry".

Click here to get the tips to save money when your travel.

Credits : Google pics

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