Having extra cash is an extremely convenient and safe solution. Undoubtedly, having a credit card is a kind of security and convenience. However, to use it wisely and wisely, there are a few important principles to remember – first of all, remembering the interest-free period.
Well, the interest-free period gives us the opportunity to take a quick and easy loan in the form of credit card credit. However, it should be remembered to pay back the amount that the bank demands in a given month in the period specified by the bank and that the bank does not add any additional interest.
Therefore, it can be said that having a credit card is a convenient and cheap security in the event that we suddenly run out of cash.
Credit Card Advantages
A credit card has many uses. Thanks to it, we can conveniently pay for purchases, both traditional and online. In addition, thanks to the credit card we will book a hotel room or rent a car. In addition, we can always withdraw cash from an ATM.
Credit card disadvantages
Unfortunately, a credit card loan is usually much more expensive than a regular cash loan. However, at present, a large proportion of credit cards have an interest rate of around 10% per annum. It is worth remembering, however, that compared to a regular loan or credit, a credit card gives us the opportunity to avoid paying off any additional interest. You only need to comply with the interest-free period.
What is the interest-free period?
The interest-free period is the moment when we use a free loan. On average, it lasts about 55 days, the condition for using the free credit card is to pay off the debt by the end of this period. We will obtain information on this subject in the credit card agreement with the bank, on the Internet in your client panel or on the account statement.
Remember that the interest-free period works only for cashless operations – i.e. card payment in a store or online. Unfortunately, we will not use the interest-free period when withdrawing cash at an ATM. When the bank starts charging interest from the moment you withdraw money from your account. In addition, we must remember that by using an ATM we are exposed to the payment of an additional commission.