How to handle credit limit?

As we have seen that a lot of credit cards are available which vary according to their features and types. One of the unique options is the best cashback credit card which is provided with a credit limit which represents the maximum balance. This is the balance that is provided to the cardholder on the credit card at a point in time. The maximum balance provided through a credit card can be used for different purposes like different purchases, balance transfers, cash advances, finance charges, and other payments.

This is really important to handle credit card balance because when you exceed your credit limit, your creditor may charge a fee, it means an outstanding balance. Once you get into it you interest rate charge will be increased. Some credit cards don't have a credit limit to a limited amount but the card issuers believed that you are eligible to pay off the bills on time in the light of your income, credit history and other spending factors. Such kind of cardholders is not bound to a pre-et credit limit because they are eligible and supposed to afford it. 

Why Grace Period is important?

You can use any kind of a credit card but it demands few responsibilities at users' end and one of them is the management of credit card bills. There is a time limit to pay the complete bills and it is called the grace period. This is the actual amount of time ac cardholder can have in which he/she must have to pay the complete balance before a finance charge is applied. 

Can I have a credit card?

To hold a credit card you need to be fulfilled a few things. Also, most of the banks have categorized the customers according to different types of cards. From a usual mid-range customer to high net worth individuals, there would be a variation in card type and credit limit. 

If we have a look at credit card eligibility, most of the account holders can take the services of a credit card but you have to maintain a certain amount of a balance. In a formal discussion following things need to provide to a card issuer:

• You should first have a current account in the bank with the required amount of credit in your account. 
• If you are a job holder then your job letter would help you to convince for credit card services. 
• Your past credit history will evaluate the type of card and your credit card limit. If you have a well-reputed history then most of the banks would happily be issued a card according to your requirement but on the hand, if you have a history with an outstanding balance then it would be difficult to manage a credit card. 

Try to use your credit card in a responsible way and always repay the bills on time so that to build an excellent credit history. This will help you in getting unlimited discount offers and sometimes you can have loan offers.