Get to know the credit card better to take advantage of it

Long are gone the days when cash was the only way to make payment in the real world. We have moved into the digital world. We can now move around the world without the even carrying a single penny. Ohh no! International vacations aren’t free! The ways we make the payment has changed.

We are more in a cashless economy. The debit and the credit cards have made that possible for us. There are none who aren’t sure of these cards but there are some in the millions who still don’t take familiar with it. Lets us dig a little deeper to get more info.

What is a credit card?

There are most of us who get confused between the debit card and the credit card. No doubt the similar look confuses us and demands to get more info. However, unlike the debit card that has funded stored in it, the credit card doesn’t have any funds in it. You actually take a short-term loan from the bank that you have to pay at the end of the month with obviously the interest rate included.

The two types of credit cards present are:

  • Secured Credit Card: These credit cash have a cash deposit in the bank account that is equal to the card limit that the bank provides. This is used to reduce the risk of cash non-payment at the end of the month. If that is not done then you have to pay interest.
  • Unsecured Credit Card: these cards aren’t backed up by any cash deposits. With this, you get a credit limit that is approximately the size of your income.

The advantages of the credits cards

The credit card doesn’t have a limit of the cash that you can transact. Here are some of the notable advantages of it.

  • Emergency cash

Since the secured credit card doesn’t have to have any limit to the transaction hence you can use the card any time to help assist an emergency. With the normal saving account, you have to make sure that the account is backed up with sufficient cash in case of an emergency. With the debit card, you are saved from a grave situation.

  • Rewards

Who doesn’t like the free thing? There are several credit cards that offer the user to get rewards for the transaction in the name of rewards points. These rewards points can be converted into cash in the next transaction.

In addition to that, the transactions with the credit card provide the user with cash back, discounts, gift cards, coupons etc. This makes the use of credit cards all the more attractive.


The credit cards are the best thing available if you never want to run out of cash. However, you have to keep this in mind that you do have to pay them back so make say to use it wisely.