Credit Card

Credit cards give customers a pre-set credit limit which he can use to pay for his purchases without having to pay in cash or issuing a cheque. The credit limit of the card is decided by the financial institution depending on the customer’s credit score and monthly income.

advantages of credit cards are best enjoyed when cards are used responsibly. It is essential for anyone who decides to open a line of credit to consider how they plan to make the payments and how to use their newfound purchasing power responsibly.

It can be beneficial to use a credit card for purchases that allow for the balance to be paid off within a reasonable time frame. If there is no plan to pay off the balance, however, it will likely continue to accumulate interest, reduce spending power and potentially limit the benefits of having a credit card. A good rule of thumb for using credit cards responsibly is not to use them for impulse purchases or unaffordable items if you cannot pay it off within a reasonable amount of time