Tuesday, 29 November 2011

Usage of Credit Cards in Personal Finance


A Credit Card today , has become a very convenient way of handling Personal Finance for an individual or a family . Credit Card is also known as Plastic Money and is one of the most important inventions of the 20th Century , which is being used rampantly even in the 21st Century all over the world .
            Credit is the procedure of selling services or goods to a buyer , without the buyer having to pay in Cash . Thus , a Credit Card is a standard size smart card usually made of  plastic that consists of a machine readable code . It is a convenient way for cash , in offering credit to a customer and is issued by a financial enterprise like a bank or service provider . An internet information says that John Biggens of the Flatbush National Bank located in Brooklyn , New York was the inventor of the credit card issued by a bank way back in around 1946 . The internet also informs that the introduction of the First Credit Card in India is claimed by the Central Bank of India , in 1980 by the name of “Central Card”.
            There are various advantages of using Credit Cards for improving one’s Personal Finances . By Credit Cards a customer can make purchases of high amounts without having to carry so much of cash in hand . Credit Cards also enable a customer to withdraw cash from Automated Teller Machines known as ATMs , anytime and wherever they are located . Credit Cards also provide the facility of accurate recording of various purchases by a customer into a Single Statement .
            Apart from advantages , Credit Cards also carry some disadvantages . At times Credit Cards can turn a person into a spendthrift , resulting in over spending on redundant expenditures . If a Credit Card is lost or stolen then it may result into unwanted expenses or fraudulent charges . Thus , Credit Cards must be handled carefully .
            The procedure of using a Credit Card is stated as follows . When a purchase on any goods or services is made , the credit card user agrees to pay to the bank . The goods or service provider swipes the card over the Point of Sale or “POS” machine . The card holder agrees to make the payment by signing a receipt with a record of the card details and also indicates the amount to be paid or by entering a personal identification number also known as “PIN”. A Credit Card can also be easily used to make transactions on the internet . The goods or service provider needs the customer’s name on the card , the credit card number and the expiry date , a CVV code which is at the back of the card & signature panel's last 3 digits , in processing of an online order .

            It is very important also for an individual or a family to also see that which bank can offer the best credit card keeping in view various points like Annual Percentage Rate , Length of Grace Period , Credit Reward Points and Credit Limit to improve one’s Personal Finances through Credit Card Usage .

1 comment:

  1. Now websites like Alexa are also tracking this blog. Alexa is a Website Ranker which inspires many sites to improve their SEO Techniques. SEO means Search Engine Optimization.

    ReplyDelete

Press this Button if you Like this blog site

Indian Financial Budget Videos

Loading...