BANKING AFFAIRS

Detailed explanation-1: -Credit cards give you the ability to buy now and pay later, even over the course of months or years. Plus, many credit cards offer 0% introductory APRs. Using such a card for a big purchase can save you a lot on interest, as long as you pay off your balance before the regular rate takes effect.

Detailed explanation-2: -The purchase rate is the interest rate applied to regular purchases made with a credit card. This rate is applied to any unpaid purchase balances at the end of the billing cycle. Purchase rates may be based on a borrower’s creditworthiness and credit history.

Detailed explanation-3: -As you keep paying off your revolving balance on your credit card, your credit score will go up and you’ll free up more of your available credit. Whereas with an installment loan, the amount you owe each month on the loan is the same, and the total balance isn’t calculated into your credit utilization.

Detailed explanation-4: -Cash advances allow cardholders to borrow money against their existing credit line. Cash advances may have higher interest rates than typical credit card purchases do.