Let’s say you are stuck in a situation where you have already made purchases but you don’t have enough cash to pay the bill. What would you do apart from praying for a miracle? How about having something with which you can make easy payments without even carrying any cash. Yes - it’s possible with credit cards.
Credit cards are issued either by banks or financial institutions. They pay money on your behalf that you repay later on a certain date. The payment is made when you offer your card to the shopkeeper. He will then swipe your credit card on a machine called the reader.
You’ll get a receipt confirming the amount that you agreed to pay. Your signature on the receipt gives your confirmation that you will repay this amount.
A credit card is a small plastic card and has a black magnetic strip on it. The card is designed in such a way that it makes it easy to carry and use.
It’s very simple to get a credit card. The credit card company will check your income status, your credit history and will conduct a credit rating check to make sure that you’ll be able to repay.
The company will expect you to repay back the amount every month on a specified date and in case if you’re unable to pay the balance a late fee is charged on that balance.
Tags: Credit Cards