Credit Card

• By admin
• 27/10/2015
• 0

What is Credit Card?

Credit Cards can be termed as plastic money.

A Credit Card is issued by a credit card provider (usually Banks and NBFI's) and they are designed to act as a payment solution for purchasing from shops electronically or online instead of cash. You can also use credit cards for balance transfers and taking out cash (also known as cash advance or cash withdrawal) from any ATM machines.

People can use credit card worldwide as they are accepted in millions of places at home and abroad, so they are very handy in any language. There are associated fees or charges for using your credit card overseas, so check your agreement with the card issuer before you start using the card.

When you get a credit card customers will be given a credit limit. This is the total amount people can have to spend using the credit card. One should always leave some available credit on the credit card for any interest to be applied.

Details of all transactions using the Credit card will be reported on the statement, along with:

• the minimum amount you must pay (To avoid penalty)
• the date by which your credit card provider must receive at least your minimum payment (Usually 5% of outstanding Amount).

If you do not pay off your balance in full each month, you will be charged interest on the outstanding amount  on your account. Check your credit card agreement to know how much ( Interest Rate ) you will be charged.