What is Revolving Credit?
The caveat in credit card spending is never to have any bills outstanding. If a customer does not pay the total outstanding amount by the due date, the Card Issuing Bank will charge a very high interest rate( even up to 44% per annum) on the outstanding amount and probably another service charge on top of that. This is where the Card Issuing Bank make extra money. In fact, Card Issuing Bank actually encourage customers to revolve credit by offering appropriate schemes like Balance Transfer and payment by Equated Monthly Installment(EMI).
The caveat in credit card spending is never to have any bills outstanding. If a customer does not pay the total outstanding amount by the due date, the Card Issuing Bank will charge a very high interest rate( even up to 44% per annum) on the outstanding amount and probably another service charge on top of that. This is where the Card Issuing Bank make extra money. In fact, Card Issuing Bank actually encourage customers to revolve credit by offering appropriate schemes like Balance Transfer and payment by Equated Monthly Installment(EMI).
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