Credit card

Ellen Says: Having a credit card is a boon as it has many advantages. It eliminates the risk of carrying cash and it also does away with the need to go to the vendor as on-line shopping with the help of credit cards provides a hassle free shopping experience within the confines of one's home. The best credit cards, thus, minimizes personal contact during purchases and does away with the need to go out of the house for shopping.

By making regular purchases through the credit card and paying off in time, one can improve one's creditworthiness and increase the credit limit. As the payment is guaranteed, the vendors prefer to make sales against credit cards. A credit card is a plastic card issued by the credit card company, and it allows you to make purchases without paying any money to an extent, which is predetermined. As soon as you pay back the amount you have spent or a part of it, the credit limit is automatically replenished.

A due date is normally stipulated for paying back at least a part of the amount spent by you and it is necessary to pay back by that date. In case of failure to do so, the company levies a finance charge or interest on the unpaid amount.