Credit cards, definitely, are there to help you with unexpected, heavy expenses and help you pay back the money later (within the grace period) without any extra charges. Credit cards are for the convenience of users. If you want them for your easy life then icash.ca can give you a lot of options with minimal documentation.
But this convenience turns into a challenge when you fail to pay back on time and could make you pay back to bank more than what you spent. The high interest charged by banks or your other expenses can make you fall in debt and probably you will curse yourself.
- Secured credit card: If you don’t have a credit history or in case if you have bad/low credit score, then these cards can help you to up the credit score. The banks want a security deposit equaling the credit amount you need. This ensures that even if you fail to pay back on time, your credit will be paid off ultimately. These cards are best for limited credit, but still, you have to pay a monthly processing fee and repay the amount on a monthly basis.
- Balance transfer credit cards: These cards provide the option of paying off the large debt amount in a cost-effective way. Its low introductory rate for transferring the balance of one card to another helps the user in paying off large credit sum. The smartest way to use these cards is to pay back the past due amount of credit before the expiry date of the promotional period. The introductory rate is generally offered for a certain period of time and that period is known as a promotional period. So you better make a wise and smart use of that by paying your due credit card amount.
- Rewards credit cards: Accumulating points on every purchase and then redeeming these points for cash back offers or any other cash rewards like discounts on merchandise, hotel or traveling etc would seem very appealing to customers. This appeal can turn into a sour experience if the card has high-interest charges, high annual fee or complicated redeeming policies. So it is always better to look for the areas of use before applying for these cards. It could be expensive and the redeeming benefit could be shadowed by high charges at the end. The smartest way to use these cards would be on monthly groceries and other regular utilities.
- Standard credit cards: These cards do not offer any incentives or rewards points, but are the most basic version of credit cards. It offers the user to use a specific credit amount decided by the lender, which keeps updating or revolving. These cards help the user to manage the unexpected heavy expense and then pay off in small amounts later on. The all-time wise decision would be to use credit cards only for your unexpected expenses and not using them for frequent purchases which ultimately lend you into a debt crisis.