Using a Credit Card to Profit
A Credit Article Contributed by Manoj Misra
What is a Credit Card?
A credit card is also sometimes called the plastic money. It is a card that enables one to pay for goods and services without using cash or writing a cheque.
Credit card has become a popular way of commerce in most developed and developing countries of the world as its is convenient to do monetary transactions nationally and internationally.
It is necessary for one to not only become familiar with the use of a credit card but also be judicious in its use so that one does not land into trouble from its over or excessive use.
Things to Keep in Mind While Using a Credit Card:
a) Know your credit card in terms of the benefits it provides you and the credit limit it binds you in.
b) Always keep in mind that a credit card payment is a loan that you keep on accumulating with each use.
c) A credit card can give you a false sense of security into shopping without being prudent.
d) Since a credit card is a single entity, it could easily slip out of your wallet or bag and get lost.
e) In unsafe hands the credit card could be misused and leave you with huge credit bills. So quickly report a loss to your credit card service provider and the local police.
f) Normally there is a time limit that the credit card service provider gives you within which if you make a repayment you can make huge savings on interest amount otherwise payable by you.
g) Now a days credit cards service providers entitles you with 'reward points' which can be redeemed against discounted purchases or on your annual fee on the Credit card.
h) Credit cards also enable you to access cash through the ATM machines of various banks in case you need cash for making sundry purchases or at facilities that do not honor or welcome credit cards.
i) An ATM machine is a cash vending machine found conveniently located in all locations, from urban to rural areas, in and outside the USA.
j) Since the credit card use became popular there is keen competition amongst the various credit card service providers which keep offering you with additional benefits trying to attract you to their service. So one needs to be fully aware of these schemes and their pitfalls if any.
Variations of a Credit Card
In recent times debit cards on the lines of credit cards are getting popular.
A debit card is a card that entitles you to utilize money deposited in your name in your bank for making purchases without going to the bank for its withdrawal. In short it is not a loan that your are attracting by using a card but drawing upon your savings in the bank.
A debit card also entitles you to keep a tab on your savings in the bank through a balance record slip that your ATM kiosk can provide you on request.
