Those who do not have credit cards nowadays often encounter a lot of obstacles in their daily life. Although these types of cards are in principle not a necessity, they do make your life a lot easier. Not so much because you don't have to repay the amount spent until later, but because many purchases go more smoothly when you have a credit card. Just think of the many online shops and applications on your smartphone that are based on the use of credit cards.
What are credit cards?
The principle of the credit card is simple. By means of a card with a code you can make payments and withdraw money up to a predetermined limit. At the end of the month, an overview is provided with all transactions completed and you repay the sum. The advantage of credit cards is that they are accepted worldwide and you can therefore easily pay with them, wherever you are. One potential drawback is that you can spend money you don't have. This can cause a problem at the end of the month as the sum must be Demorei.
Types of credit cards
In addition to classic credit cards, you can now also use credit cards that work on the principle of a cash reserve. A limit is also assigned here and you can then use the card to pay or withdraw money, but you do not have to pay the sum (per month) in one go. You only pay back a percentage of the amount that you have used. These cards are usually more expensive than their classic version. In addition, there is also the credit card that is linked to a specific store or chain of stores. Here you can use the card to make purchases in one of the participating stores, but there is no possibility to withdraw money or make purchases in another store. Large supermarkets in particular offer the card as it entails customer loyalty.
Conditions for the credit card
The conditions for obtaining a credit card differ per lender, but are generally not that strict. The limit will differ depending on your financial situation. To find out which credit card suits you best, you can request quotes here.