Currently, the use of credit cards has increased worldwide.
There are more than 3 billion credit cards in use. Large institutions such as
Visa Card, MasterCard, and American Express Discover mostly issue such credit
cards.
There is a scientific calculation behind the 16-digit number
on credit cards. Namely, this algorithm called the Luhn Algorithm is a simple check
digit formula used to verify the identification numbers. This algorithm ensures
the correctness of the number.
The interest rate on credit cards can be 30% or more per
year, however, if the amount is paid in full every month, there is no interest.
The reason why credit cards are commonly used is because of the benefits
available. It can be said that they are attracted especially by flight tickets,
cashback and discounts.
There is a misconception that using a credit card will
increase the debt burden, but only if you pay the fees over time will the
interest burden arise. A credit card can be useful for you if you follow your
financial management properly.
You cannot carry money with you all the time, and similarly,
you will not have money on your debit card all the time. Therefore, this credit
card is useful for you when you buy some large items.
Generally, many people have doubts about whether the cards
contain gold or platinum. Metals like gold and platinum are added to them to
design credit cards.
Americans use credit cards more, and credit card usage is higher in the United States than debit card usage. Do you know which credit card has the highest fees in the world? It is a card called Dubai First Royale Master Card. This type of card is usually issued only to the very wealthy.
There are some things we need to know to use a credit card.
Here are some tips to help you use your credit card wisely and follow your
financial management properly.
Even if your credit card has a high limit, think about your
income and only use your credit card within that limit.
Make sure you can pay the full amount every month. If you
cannot pay, the interest will go up. So, keep your credit card usage within the
amount you can afford.
If you use a credit card and only pay the minimum amount, the
interest burden will definitely increase. Only if you pay the amount in full
will the interest be reduced.
Every credit card is given a grace period. That is, it is
given for 30 to 50 days depending on the bank. If you pay the amount during
this period, your interest will not be burdened.
When you buy your daily needs and the things you need, buy
them on a credit card. Do not buy luxury items on a credit card beyond the
essentials unnecessarily.
When you buy necessary things through a credit card, there is
a chance that you will get points and cashback on your credit card and get
discounts.
Just having a credit card is not enough. It is good to check your statement every month to see if there are any errors and to make sure that everything is correct.
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