Card info in general
Payment card is a plastic card with magnetic writing. It is used for cash-free payments for goods and services and collecting money in a bank or at the ATM. To get bank credit card, user has to have bank account. There are two basic types of payment cards: credit card and debit card. User can have more cards, same or different types. Cards can be used in all shops and in all banks that have mark of a certain brand (card). In all of these cases user has to get printed confirmation about transaction or a receipt. Cards can also be used for online shopping.
All information and bank offers to sign contract for card usage, has to be prepared in accordance to rules about client information. It is considered that card can be used if user signs it on appropriate spot. You can always stop using card, without any fees for this.
Differences between credit and debit cards
Debit card enables holder to use only money available on the account (or additionally, approved minus). Credit card on the other hand enables getting additional money, more than available on the account, in accordance to rules specified in the credit card contract.
Credit card advantages in general
There are many benefits to using credit card. You have opportunity to purchase what you need right away and you don’t have to worry about your personal safety because you don’t carry cash with you. Credit card protects you from the fraud and in some cases it gives some advantages when using it for shopping. However, with these advantages come certain responsibilities. It is important to handle credit cards smartly and for that user has to understand all the conditions and deadlines related to credit card. It is also important to keep track of how much you pay and for what and to be aware of the full price of goods you purchase “on loan”. Using credit card in a way is like getting a loan. If you don’t pay owed amount in specific amount every month, you will pay interest for entire loaned amount.
The best way to benefit the most from credit card is to understand your way of life financially-what are your financial desires and needs. After you determine how to use credit card, it is also important to understand all the elements of credit card, such as:
* there is percentage/interest rate on annual level and it is important to know weather this interest rate is fixed or changeable
* Annual fee, default interest or fee for exceed
* Credit limit on account
* Grace period before interest calculation
* Advantages, including free flight miles or cash return
Keep yourself informed
Some credit card holders offer free, personalized automatic information notes they can send on e-mail or text message so you can keep track of:
* available money
* payment deadlines
* previous payments and pay-outs
Get familiar with your rights
Credit card holders have following rights:
* Zero responsibility for expenses due to credit card fraud in a case when you report such usage right away
* In some cases you can dispute shopping in certain shop due to inappropriate product or service.
By miche llumb