Savor Credit Cards is a relatively new entrant to the marketplace. The card is based on the “Savor” concept, which was developed by a group of financial institutions. Basically, the card is a prepaid debit card, with the user using his or her credit or debit card to make purchases using the funds they deposited into the card account. This way, the card holder is not risking any of his or her own money when purchasing things using the card.
However, the prepaid credit card has its drawbacks, especially when it comes to its ability to offer customers a wide variety of products and services. The key problem with the card is that it does not provide much financial assistance, and does not help you in building a good credit history.
This is why many companies that offer credit cards often provide users with a card with a higher limit, allowing them to make purchases using their own money. However, this higher limit makes it difficult for the user to pay the entire amount at once, and as a result, he or she ends up paying late payment charges and penalty fees. In addition, the increased limit may allow you to purchase items at a cheaper price than the one you would be able to find in a store.
As a result of these negative points, it is not surprising that Savor cards have been less popular than other similar products. However, the fact remains that they are available to consumers, and there is a chance that you might want to try them out. Even so, you should do your research first before you commit to the purchase of a Savor card. Here are some important questions that you need to answer before you decide to go ahead with the purchase:
What type of interest rate will I have to pay? The interest rate that is charged depends on the financial institution from which you have made the transaction. In most cases, you will end up with a higher interest rate if you use your credit card to make purchases at the same place where you have an existing account, because this will ensure that you do not make late payments on the account. If you decide to go shopping somewhere else, you will likely end up paying the full amount at once, but you can use the Savor card in order to save some money and buy a slightly lower-priced item. in order to repay the balance in full.
Will I be allowed to charge items using my card without paying the total amount? It may seem like a great idea to use the card to purchase something, but this is not advisable, especially if you have an existing card or account with a high limit. If you are interested in using the card to spend more than what you have on your balance, you should use it to pay for small things that will help to clear your bill.