- Credit cards essentially let you borrow money up to a certain
amount (your credit limit) from the card issuer to complete your
- Credit cards also has the added benefit of installment
payments, that is, spreading payments to months or even years, not
to mention the bevy of deals and discounts to partner
- Some credit cards offer rewards each time you spend.
- NOT ADVISABLE FOR PEOPLE WHO ARE PRONE TO SPENDING BEYOND
THEIR FINANCIAL LIMITS. DISCIPLINE IS ABSOLUTELY
|CARD LIMIT||Depends on the approved credit limit assigned to you by the bank.
Increase in credit limits may be approved by the bank depending on
card user's credit history.|
|PAYMENT||Allows you to ‘borrow’ money to be paid back at the end of the
card’s billing cycle|
|FEES AND PENALTIES|
- Annual fee (Most banks waive the first year annual fee.
Succeeding annual fees may also be waived upon request if user is
in good credit standing.
- Interest charged for unpaid balance and penalties for late
|WITHDRAWALS VIA ATM||Can withdraw a portion of credit limit (charged with fee)|
|MAINTAINING BALANCE||No maintaining balance|