A sea of advantages opens up in front of you when you choose a good credit card. Firstly, avoid carrying cash with you for a simple matter of security. Pay your bills swiftly, including through touchless options!

In addition to all the advantages of a credit card, it also facilitates your financial control, for example, through the straightforward tracking of your expenses.

But the essential aspect is the Building of Credit History. This is crucial for loans and other financial transactions since it demonstrates payment capability.

A credit card is simply a means of payment. The significant aspect is that it allows for both immediate and installment purchases. This is the most basic function it serves.

You conduct these transactions using a pre-approved credit limit from a financial institution. The application process is typically straightforward.

Upon approval, you receive the card with an already available credit limit. Here’s where your part begins. You make purchases either in physical stores or online, accumulating a statement.

The partnership completes its cycle when you pay by the due date to avoid interest and penalties. This process is what is expected from your relationship with your credit card.

As mentioned earlier, the credit card is a crucial tool for building your credit score. There are even options specifically designed for this purpose.

The well-known “credit builders” – on our portal, you can identify the best ones within this and other categories.

Yes, everything in life has its two sides of the coin. And, of course, with a credit card, it wouldn’t be any different. Therefore, follow our compilation of the pros and cons below.

An aspect that demands extreme attention. Let’s explore the main ones. The most common is the annual fee. And the dreaded interest rates. These, in turn, can be “rotating” or “installment interest.”

Moreover, fees for cash withdrawals are common. There is a common practice of charging for the second card issuance caused by loss, theft, or damage.

Other fees:

Basically, there are two types of interest. Revolving interest functions when a fee is charged if you don’t pay the full invoice amount on time.

Rates vary according to the card issuer and your credit profile. The other type of interest is installment interest. These are the fees charged when you divide the invoice into several payments.

They are generally lower than revolving rates but still considered high. Therefore, always use your credit card responsibly.

Simply put, it is the maximum amount you can spend with your credit card. This value is determined by the card issuer based on your income, spending habits, and credit history.

However, how it is calculated is also influenced by the type of card you applied for. Some cards are designed to help you manage your expenses, while others are geared towards facilitating spending!

There is a minimum amount you can pay from your credit card statement. It’s usually around 15% of the total invoice amount. But be cautious about the interest if you only pay the minimum.

There are various types of credit cards available in the market, each with its own features and benefits. To simplify, below are the main categories of credit cards.

The essential step before applying for a credit card is to have a clear understanding of what you expect from it.

An option that assists you in building credit and can act as a guide on your financial journey is the Mission Lane Visa® Credit Card. Get to know this excellent choice with all the details!