Nowadays, many people are using credit cards in
their purchases because of the convenience of a cashless shopping.
Aside from that, credit cards are accepted in many
Credit cards are being issued by banks and credit
companies. Credit card refers to a small card similar to an ATM
card. It bears the name of the card holder and is secured with a
personal identification number or PIN.
The credit card allows the holder to purchase goods
and pay for services to a partner merchant without the need of cash.
The credit card company grants the user a credit line so that the
consumer can purchase using the credit card company's money as if it
was a cash advance. The total cost of the purchases will then be
collected by the credit card company to the consumer on a monthly
basis. Interest will not be charged if the card holder pays the full
amount within the month. Interest charges will apply if the amount
is not paid in full.
Because of stiff competition among the credit card
companies, these companies usually offer many incentives to their
customers. This includes reward points, gift certificates and cash
back. Some even offer 0% interest credit cards to attract more
Card holders who purchase using their credit cards
will be verified by merchants through an electronic verification
machine. The verification will allow merchants to see if there is
enough credit to cover the purchases. The verification process is
done in real time.
Credit card holders will receive a monthly statement
of billing indicating details of purchases through the credit card.
The statement includes all the fees the holder needs to repay to the
credit card issuer. Some credit cards allow their consumers to auto
debit their credit cards to their existing bank accounts so they
need not to worry of the payment schedules.
Though the use of credit card has some benefits,
there is a growing concern on the effect of using credit card. There
has been an increase of people being indebtedness due to
uncontrolled purchasing using a credit card. One of the major
concerns is the popularity of credit card by college students. This
has resulted to the increase of students who are burdened by debts.
This has raised concerns by the public and requests credit card
companies to be more responsible with their business.
Another concern is the security of the credit card.
There have been many reports of fraud and theft of credit card.
Since the transaction relies on that piece of card, the only way to
secure it is to physically protect it from any unauthorized persons.
This includes the security of the credit card number and the PIN. It
is advisable not to share with anyone this important information
otherwise you could be the next victim of fraud.
Having a credit card is indeed very attractive.
Imagine you can purchase anything you want without using any cash.
But be very careful of your spending because you might end up in
heavy debt the moment you don't control
The Credit Cardholders' Bill of Rights Act of 2008
passed the House on Sept. 23 by a vote of 312-112 (with nine members
not voting). The bill is aimed at "major industry abuses that
unfairly hurt consumers.