Credit cards
The credit cards become popular in the 60s of last century and arise like complement to the cash to facilitate the operations of the consumers. An advantage is that they can be used in the whole world, without worrying us of having cash in the local currency.
The credit cards are cards that are used to have a credit line that allows to the holder of the card to do buys or withdraw money of a teller or of a bank up to a certain limit and within a period of stated time that is usually of one month. The big advantage of the credit cards is that the used credit can be paid completely every month or to divide the payment in several months. This gives us a flexibility at the time of doing buys that we will be able to pay later in several period.
Since is already the above mentioned, at the time of paying we can do it of two ways:
To pay in order month
Or, rather, at the beginning of the following month. This way the expenses that we have done with our card are loaded in the account associated with the card at the beginning of the following month. Doing it this way we would not pay interests.
To pay of deferred form
We can divide the payments of a flexible form and decide how much we want to pay every month, although there always is usually a minimum. It is necessary to bear in mind that, although this is a very comfortable way of paying our buys, here yes that we will have to pay a few interests that will have been established on having accepted the contract of the card and that it is not strange that they overcome 20 % per year.
Due to the efforts of marketing of the banking institutions we can see types and names different from credit cards. This way we find names like ‘classic‘, ‘gold‘, ‘silver‘, etc. depending on the credit limits and of the conditions of each one.
The banks usually receive an annual commission for the credit card. Also, the credit cards usually have associated some type of insurance, be already of trips or of accidents, or even sure in case of theft and fraudulent use. This always depends on the type of card and of the banking institution and it will be told in the conditions of the contract of the card that it is suitable to read with attention.