In this lockdown, credit cards are helping users by providing additional credit. Because most of the businesses are closed or non-operational. Using them carelessly can put users under heavy debt. Also, the credit score is affected heavily and the recovery is also slow. Therefore, in this lockdown people should choose credit cards after checking all the pros and cons.
Now, the best way everyone can check these pros are cons is by checking out credit card reviews. For example, if any individual is interested in purchasing a fit MasterCard then he should check a review of fit MasterCard. This way he can understand how the card works. If he thinks he needs a better option then he can check a review of the total visa credit card or an assent platinum card review. People who are having bad credit have limited options in the market. They should go for Secured credit cards. If they are unable to pay collateral then they can choose credit cards for people with bad credit no deposit. Now let’s check how to get most of a credit card:
• Pick wisely: A good understanding of terms like APR, Foreign transaction fee, cash advance fee, collateral is important before purchasing a credit card. This understanding can be easily improved by reading credit card reviews. In these reviews, credit card users can check how experts are using these cards. For example, suppose any individual needs a travel credit card and he is confused about his usage. Hereby reading the reviews, he can understand the benefits he’ll get in domestic and international travel respectively. If there are credit cards of multiple companies providing similar benefits then he can also compare them. This research can help in minimising the debt and maximizing the usage.
• Earn and spend: Many credit card companies are offering many types of rewards like cashbacks and perks or vouchers. Many credit card companies have a tie-up with the retail chains for these arrangements. Accordingly, these vouchers can be used at respective counters or stores only. Users should focus on cashback. This way they can make their cards effectively free. For example, they can compensate their credit card purchasing fee with cashback.
• Use time smartly: Companies don’t charge interest suddenly on credit cards. There are some days in which users have to pay back the money. Suppose any company is offering 40 days of the interest-free period then users should quickly use credit. That’s how they can maximize the usage of the interest-free period. Users should operate their monthly cycles correctly as missing payments is not good for credit and pockets.
• Try to pay maximum amount: If any user is unable to pay at the end of Monthly cycle then he has to pay interest on the outstanding balance. Generally, the APR (annual percentage rate) is 20% This way if he is holding payment of $5,000 then he has to pay $100 if the interest is charged 2% monthly.
Note: These figures are taken for ease of calculation. Please check the actual Interest rate in the terms and conditions. Interest rates vary from plan to plan. Also, don’t forget to check Interest in promotional offers and Interest applied after the offer ends.
• Don’t neglect the factors building credit score: There are 5 basic factors which help in improving credit score. Neglecting them can harm the same. These factors are payment history, Utilisation Ratio, credit mix, new credit and length of credit history.
Conclusion: Lockdown has heavily affected the payment cycle of credit card users. People are thinking of purchasing cards should understand all the technicalities before purchasing them. In understanding these technicalities, reviews can help a lot.
