Credit cards are a boon in many ways for it has features and benefits unlike any other form of plastic money. In fact they are the best devices to handle emergencies and also times wherein you need a loan to make your dreams come true. This is because the proper use of credit cards helps you build a good credit history thereby positively affecting your standing with the bank.
Interest rates charged by the bank
Credit cards offer the facility for deferred payments for which an interest is generally charged. There are two ways in which a customer can avail of this facility:
- Wherein the customer is unable to pay the total outstanding on his credit card and
- Instances where the customer makes a lump sum single amount transaction.
In the first instance the customer is just required to pay a minimum amount. Interest is charged on the balance remaining amount as well as on any further transactions taking place.
In the second instance the customer has to pay an interest rate only on the single amount he wants converted into flexible pay. No interest is
Understanding Student Loans
Students who opt for higher studies often find that they lack the required capital to fund their anticipated study program stretching perhaps to several years. Fortunately, there are many institutions that a student can turn to for assistance for financing his education program. Except in the case of grants and scholarships, all other loans taken have to be re-paid; and unfortunately this fact does not strike the borrower forcefully enough at the time of obtaining loans. The obvious reason for same is since many repayments start only on graduation; and due to a feeling of satisfaction for the time being at finding the funds to cover more and more of the direct education costs and other education related expenses.
There is a cost attached to every loan that you take and it is very important that you educate yourself first on the types of loans available, which carry fixed as well as variable rates of interest during the lifetime of the loan. Even at fixed rates, the rates attached to different types of loans differ, as does the repayment periods, deferment options etc. It is also pertinent to visit websites of different lenders