Running out of cash on cash? Most people would often resort in using their credit cards for they are surely of help whenever you ran out of money in your pockets. There are also entities that accept credit cards as their primary method of payment such as gyms.
Mobile companies also accept credit card payments especially when a large amount of money is involved. Credit cards, just like most of the other things in the world, may be a friend or a foe or a bane or boon depending on how you will use them. Some people are against the use of credit cards because they can spend more than the amount of money that they have. But pro credit cards would say that it all depends on the discipline you have for yourself. You may also see examples of anniversary greeting cards.
The credit card can be helpful or can do harm depending on how you use or abuse them. But as we observed, there are really a lot of people around us who are using credit cards especially for emergency purposes.
Hence, in this article, if you are looking for credit card designs that might meet your need for a credit card design, check out the several examples of awesome credit card designs presented below.
Basically, a credit card is a type of card that is issued by a financial company with the benefit of the cardholder to borrow funds to pay goods or services. The condition for this debt is that the cardholder will pay back the original amount of money borrowed plus interests or any charges that are agreed upon by the issuer and the card holder.
It simply looks like a debit card, but it is said that it has higher interest rates than other forms of consumer loans and lines of credit. Compared with debit cards, in credit cards, instead of deducting immediately the amount of money from your account when you make a purchase, you are, in essence taking a short-term loan from the issuer of the card for an interest. The amount of interest depends on the length of time you pay back your loaned amount. You may also see thank-you card examples.
Credit cards have a lot of purposes in our lives. The very obvious one is that they are for emergency purposes. Whenever you ran out of cash on hand, you can just use your card to pay the goods or services that you are purchasing or availing. This also depends on the company that you are making transaction with because there are some entities that will not accept credit cards as their mode of payment. However, almost all the establishments in the world that we are living in today will accept credit cards. You may also like greeting card designs & examples.
Another important purpose of a credit card is to build you credit. A good credit signifies that you are prompt in paying your credits and that you did not incur a delay in your payments. This adds to your credibility and can help you obtain future loans at the most favorable rates. This also helps you get approved for a mobile phone plan, get lower insurance premiums, as well as avoid utility deposits. You may also check out birthday card designs & examples.
Aside from those that are mentioned above, another great thing about credit cards is that they have may other perks cash and travel rewards. Some credit cards even have travel or shopping benefits that can help you save your money such as extended warranty, rental car insurance, and purchase and price protection.
Knowing these great deals that credit cards can offer, many people would really like to avail or have their own credit cards with a specified credit limit according to their salary.
After knowing the basic and general meaning of credit cards as well as their purpose, the next thing that you need to know is the type of credit cards—secured and unsecured cards.
For the secured cards, the credit card is backed by a cash deposit equal to the credit limit of the card that acts as a collateral in case the card holder will default in his or her payment. This also serves as a protection for the card issuer in case of nonpayment by the holder. You must not confuse secured credit cards with prepaid cards for secured credit cards will not run out as you spend, but you still make payments similar to the general unsecured card. The moment that you will shift from secured to unsecured, your deposit will be returned to you in full provided that you paid off your loans. You might be interested in what to write in a thank-you card.
On the other hand, for the unsecured credit cards, they are not back by any collateral or cash deposit and the credit limit is based on your salary level as well as credit history. Unsecured cards are risky for the issuers since it does not contain any collateral with them. So in case of default from a card holder, they do not have something to back up the loaned amount. You may also see examples of business card design.
When you avail of credit cards, you must take note that there are corresponding fees related to the transactions of the card. But don’t worry for many of these fees can easily be avoided. Here the the common fees that credit cards usually entail.
This is a fee charged on most secured and unsecured cards, and for unsecured cards, these are often charged on high-value rewards cards. This is a fee charged each year for the use of the card. This fee is avoidable by choosing a card without an annual fee. You may also see photo greeting card designs & examples.
This fee is charged when you move a balance from one card to your another card. The fee is typically 3% to 4%. Note that this fee is only payable if the interest you would pay in your current card is greater than the balance transfer fee that you are going to pay. You may also like examples of name card design.
This type of fee is charged when you make purchases oversees. The fee is typically 3% to 4% of the amount of your purchase. And obviously, to avoid this fee, you must choose a credit card without foreign transaction fees.
Another type of fee is the late payment fee which is charged when you failed to pay at least the minimum payment by the due date on your credit card statement. The fees would approximately be $35. You can avoid this by paying on time. You may also check out love greeting card designs & examples.
As the term suggests, this type of fee is charged when you balance exceeds your credit limit. Hence, always be mindful of the current balance of your credit card if you do not want to pay this fee. You can avoid this fee by not spending more than your credit limit. You might be interested in examples of animated greeting cards.
There are things that you need to know before deciding on whether you choose that credit card or you will find another card with fees and perks that are with great deals. Here are the common things to look out for when choosing a credit card. You may also see business card logo design examples.
This refers to the cost of borrowing on the credit card if you do not pay the whole balance of each month.
This refers to the amount that you get back or be refunded to your card. This most likely depends on how much you spend using your credit card
As has been presented above, there are fees and charges related to your credit card and they may be in the form of annual fee, balance transfer fee, foreign transaction fee, late payment fee, and over-the-limit fee. The discussions of each type of fee is presented above. You may also like corporate greeting card examples.
This refers to the starting amount of payment for your interest rate. Note that this will increase over time depending on the terms of the credit card that you are availing.
There are credit cards that offer loyalty points depending on the amount you spend. The accumulated points can be used to buy goods in a particular shop or store. You may also check out designer business card designs and examples.
This is an amount you will pay if you do not pay off the balance of each month. This is usually 3% of the balance due.
Generally, credit cards are used by many people because of the many benefits that it can give to the holder; among those are s follows: they provide you funds for emergency purposes, they are important for you to build good credit, and lastly, they have many perks and rewards. You must also note that there are two general types of credit cards which are the secured and unsecured credit card. The only difference between the two is that the secured credit cards are backed up with a collateral or cash deposit. You might be interested in music business card examples.
You must also be aware that credit cards have potential fees that you may need to pay such as annual fee, balance transfer fee, foreign transaction fee, late payment fee, and over-the-limit fee. A lot of these costs are easily avoidable so you must know and understand each of them.
Other things to look out when you choose a credit card are annual percentage rate, cash back, charges, introductory interest rates, loyalty points, and minimum repayment. You may also see star wars greeting card examples.
Upon knowing all the above important considerations regarding credit cards, it is expected that you now understand how credit card works and it all depends on you on how you use or abuse credit cards.
Ultimately, never miss the chance of checking out the examples of credit card designs presented in the above section.