What Is a Credit card?

A credit card is a plastic rectangular card issued by a financial company to make purchases. With the help of that card, the credit card holder can use the money for any goods and services. The cardholder promises to pay the agreed fee for the amount borrowed from the card issuer whose concession period is approximately 25–30 days in which the used amount has to be paid. A revolving account is created by an issuer (mostly banks) and provides a line of credit to the cardholder allowing the cardholder to access the money.

Advantages of Credit Card

1. A credit card provides additional purchasing power
2. The borrower also gets additional benefits and rewards with credit cards.
3. Credit cards also have a positive effect on credit history.
4. A credit card can prove to be the best option in case of emergency
5. A credit card reduces the need to carry cash and provide convenience to customers.

Types Of Credit Card

There are many types of credit cards available to consumers that offers and benefits may vary depending on their needs. Before choosing your credit card, you first decide which type of credit card will be right for you based on your needs. Visa, MasterCard, American Express are card issuing companies that set the terms of transactions for merchants, card-issuing banks.

• Secured credit card
• Balance transfer credit card
• Business credit card
• Cashback reward credit card
• Student credit card
• Retail credit card
• Travel reward credit card

Best way pay off credit card debt

Debt can seem a huge problem, especially when it has spread to individual accounts, loans or credit cards. There is a lot you can do to avoid credit card mistakes But there are some simple strategies one can follow to get out of debt.

1. Prioritize debts: You can make a list of all your debts and prioritize them according to the order of importance. Usually, mortgage payments and credit card payments are usually at the top of the lists, although priorities may vary for everyone. Many people want to get rid of their highest interest rate debt first and end them. This process can help you to a great extent.

2. Track spending and create a budget: The best way to accelerate loan repayment and get out of debt faster is that reduce your monthly expenses and create a budget that will reduce your credit card debt. Paying off debt should become a top priority for all of us because that debt can stay away from you to achieve life goals.

3. Snowball Method:  The snowball method is a debt repayment strategy that focuses on paying the debt with the lowest balances first. This option may be a better solution to manage finances over time. The debt-snowball method is often taken to repay revolving credit, such as credit cards, under which excess cash is devoted to paying off the debt with the smallest amount

4. Debt Consolidation Loan: Typically personal loans are used for debt consolidation, in a loan with a monthly payment; this loan ideally comes with a lower interest rate. You can use the money from the loan to pay off your credit card balance so that you can pay each month with a personal loan. Debt-consolidation loans offer flexible repayment terms, so a borrower can select the one that fits their budget.so a debt consolidation loan can be a convenient option for paying off credit card debts.

5. Adjust Your Priorities: Most borrowers have wishes that they have almost everything they want, but it is impossible to do so and so many people drown in debt so that they buy all they want. However, even rich people cannot buy everything they want. So if you want something, don't buy it until you have the money and remaining debt. You should adjust your new priorities which will help you repay your remaining debts!