Let’s imagine you’re in a hurry to buy a gift… you get into the shop, choose a gift and then you open up your purse to remove cash. There it goes… all your money is on the floor.
If you had a credit card at that moment it would have saved you from the disaster. A credit card is a small plastic card and also has many advantages. The card is designed in such a way that not only is it easy to carry but it also has a style. Credit cards make payment easy, as you don’t have to carry loads of cash with you.
Credit cards are issued either by banks or financial institutions and are known as card issuers. They undertake to make payments on your behalf. This means when you use the card to make any purchase you are not using your money but you are using the card issuer’s money, which you’ll pay them later.
You give your consent to repay the amount by signing the receipt, which is issued after making a purchase.
When the card is swiped on the card reader the payment transaction is completed. You can use credit cards to make payments both within and also outside the country.
Credit cards are issued only after checking the credit history, current financial status and other factors, which decide whether the individual has the capacity to repay the amount to the card issuer.
You’ll receive a monthly bill on the purchases made which has to be paid on the due date, if you’re unable to repay then a fine is charged on the balance.
Tags: credit card use, Credit Cards