Credit cards have a completely different functionality when compared to debit cards. While debit cards let you spend money that you have saved in your own account, credit cards let you spend money that you borrow from the bank. In a way, a credit card lets you loan small amounts of money each month for expenditures.
Although a credit card can be quite beneficial under certain circumstances, you need to keep an eye on the money that you spend using the same. Since this money is a loan, banks charge a substantial interest on it. If you are unsure about how much you would need to repay for a certain amount of credit card expenditure, an EMI calculator can be quite helpful. Here is a look at some of the benefits of credit card EMI calculator.
1. Understanding the connection between rate of interest and credit card bill
Most people tend to feel that they can spend as much as they want when they have a credit card. However, this is not true for two simple reasons. Firstly, each card comes with a credit limit, which you cannot cross each month. Secondly, if you reach the credit limit, chances are that you would be met with a huge credit card bill the next month.
So, it is very important to understand the interest that the credit card companies charge on your each and every purchase using the card. A credit card EMI calculator will allow you to understand how much interest you would have to pay when you spend a single buck using your credit card.
2. Determining how much you can afford
Once you understand the concept of the interest levied, you will also come to appreciate the fact that you cannot afford monumental credit card bills each month. With the credit card interest calculator you are given the opportunity to determine the maximum credit that you can take, without going overboard on your finances.
3. Picking the right card
Each credit card company offers a variety of credit cards to customers. However, not all of them will be suitable for you. Before selecting a card, you need to perform an extensive research regarding the benefits, offers and rate of interest charged on the spending. The credit card EMI calculator will aid you in narrowing down the best card for you, by helping you compare the cost of the card.
So, it is highly recommended that you take advantage of a credit card interest calculator prior to taking a card.
Although a credit card can be quite beneficial under certain circumstances, you need to keep an eye on the money that you spend using the same. Since this money is a loan, banks charge a substantial interest on it. If you are unsure about how much you would need to repay for a certain amount of credit card expenditure, an EMI calculator can be quite helpful. Here is a look at some of the benefits of credit card EMI calculator.
1. Understanding the connection between rate of interest and credit card bill
Most people tend to feel that they can spend as much as they want when they have a credit card. However, this is not true for two simple reasons. Firstly, each card comes with a credit limit, which you cannot cross each month. Secondly, if you reach the credit limit, chances are that you would be met with a huge credit card bill the next month.
So, it is very important to understand the interest that the credit card companies charge on your each and every purchase using the card. A credit card EMI calculator will allow you to understand how much interest you would have to pay when you spend a single buck using your credit card.
2. Determining how much you can afford
Once you understand the concept of the interest levied, you will also come to appreciate the fact that you cannot afford monumental credit card bills each month. With the credit card interest calculator you are given the opportunity to determine the maximum credit that you can take, without going overboard on your finances.
3. Picking the right card
Each credit card company offers a variety of credit cards to customers. However, not all of them will be suitable for you. Before selecting a card, you need to perform an extensive research regarding the benefits, offers and rate of interest charged on the spending. The credit card EMI calculator will aid you in narrowing down the best card for you, by helping you compare the cost of the card.
So, it is highly recommended that you take advantage of a credit card interest calculator prior to taking a card.
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