Financial—We may earn money or products from the companies mentioned in this post.

Credit cards are an incredibly popular form of payment around the world. Everyone wants to get one to face certain circumstances: gifts, unexpected expenses, taking advantage of an offer, etc. That’s fine, however credit cards have certain features that you should know to make a smart decision.

Below, everything you need to know ABOUT CREDIT CARDS to be knowledgeable.

-A credit card has fixed expenses, administrative expenses, extra taxes, interest rates. That represents a monthly expense that you will have to assume if you acquire a credit card.

-If you do not pay monthly the expenses that concern your credit card you can be penally punished. In addition, your credit history gets a low score.

-Credit cards have an spending limit and a cash withdrawal limit. The help that a credit card represents is relative.

-The best credit cards are only available to high-income individuals. If you’re very young or are applying for your first credit card, chances are you won’t get amazing benefits.

-You must spend only 30% of what your credit card allows you. If you spend more than that limit, you will have a low credit score in the future.

-Credit cards are poorly protected against fraud. Therefore you should be on the lookout for possible deceptions.

-The process of contracting a credit card is easy. The point is that most people don’t read the contract before signing and then are disappointed at the credit card rules.

-It is convenient that you pay the full monthly amount. If you do not, you will have interest to pay that will grow every month.

-It is convenient that you have a single credit card, although it is tempting to have several. The monthly expense that each represents could be high.

Conclusion

Everything you know ABOUT CREDIT CARDS will help you choose what suits you best according to your budget.