Credit cards are a boon in many ways for it has features and benefits unlike any other form of plastic money. In fact they are the best devices to handle emergencies and also times wherein you need a loan to make your dreams come true. This is because the proper use of credit cards helps you build a good credit history thereby positively affecting your standing with the bank.
Interest rates charged by the bank
Credit cards offer the facility for deferred payments for which an interest is generally charged. There are two ways in which a customer can avail of this facility:
- Wherein the customer is unable to pay the total outstanding on his credit card and
- Instances where the customer makes a lump sum single amount transaction.
In the first instance the customer is just required to pay a minimum amount. Interest is charged on the balance remaining amount as well as on any further transactions taking place.
In the second instance the customer has to pay an interest rate only on the single amount he wants converted into flexible pay. No interest is
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