Which is NOT a positive reason for using a credit card to finance purchases?
a) Paying it off on time can help build your credit history
b) You can get rewards and discounts.
c) You can buy something you need now and pay for it after pay day.
d) You will get charged high interest.
Answer – d) You will get charged high interest.
Credit cards can be considered as a rectangular piece of the plastic card which is provided to customers by the banks or the financial institutions. The banks provide major opportunities to the customers so that they can borrow the funds to purchase the services and goods from merchants who depict acceptance based on payment through the merchant accounts. Along with the standard line of credit, the issuers of credit cards can also provide separate cash-based lines of credit to the cardholders based on their overall financial history. The cash advances that are provided by the credit cards are however based on various conditions that can include the high rates of interest and absence of any grace period. Many different businesses currently enable the customers to make their purchases by using the credit cards that are considered to be a popular methodology used by customers for purchasing the services and goods. Around 21 days of grace period is provided to the customers by the banks and different financial institutions. The customers also need to gain proper knowledge and understanding based on the levels of interest that needs to be paid by them based on the rates already decided by the banks. The high rates of interest are considered to be an important issue that has to be understood by the customers before they aim at purchasing services and products by using the credit cards. The negative impact of credit card based on the requirement to pay higher interest rates for the money being spent by the customers is an important factor that need to be effectively understood by the consumers so that their expense levels can be reduced.
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