BANGALORE: Nowadays we don’t get out of our home or office without credit cards, but how many of us honestly know everything about a credit card? You may have used a credit card for a while now, or maybe you're a newcomer and the concept is strange to you. Most often it is seen that far from being a flexible friend, a credit card also comes with strict terms and conditions that can cost you in terms of money and worry. You should have enough knowledge about a credit card in order to use it appropriately. Here are 5 things you must know about credit cards if you want to use it the right way.

1. There are varieties of credit cards available

Varieties of credit cards don’t mean cards from different companies. There are several varieties of credit cards available for instance; there are general purpose cards that can be used anywhere and private label retail cards that can be typically used at the issuing store or service station. Most of the general purpose cards are unsecured, which means the issuer extends a credit line based mainly on your credit history. But secured cards are the ones that are backed by funds that you put in a deposit account and which the creditor can claim if you default. Secured cards are ideal for those with damaged credit and also risky for the creditors.

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