Wednesday, July 25, 2007

Credit Card Machines 802

Credit Card Basics
By Mansi Aggarwal

“Which bank’s credit card do you have?”, “what is its credit
limit”, “what type of card is it”…such questions are on
everybody’s lips today. The world seems to have been squeezed
and wrapped into a credit card. Nowadays everybody speaks and
grasps the language of credit cards. The credit card syndrome
seems to have gripped all of us.

But are credit cards only beneficial? Let us analyze the pros
and cons of this pocket plastic and see what outweighs the

The Benefits of a Credit Card:

• Keep heavy cash in abeyance—money is the most coveted thing
in this world. Carrying lot of cash wherever you go is always a
bone of contention. A credit card facilitates you to travel
without heavy cash and have a carefree and happy trip or

• Imagine yourself out for shopping in a wonderful mall. While
you shop, you remember to take boots for your son, spectacles
for mother, necklace for your beloved wife…but falling short of
money! The credit card is your best friend in such a situation.

• Even if you lose your credit card, you need not be
apprehensive and scared the way you get when you lose your cash.
This is because you can get the card freezed or blocked from the
bank and relax.

• Credit card works anywhere and everywhere nowadays. You just
need to bag your card and make a move to any destination without
bothering for money.

• Loan facility can also be availed via credit cards.

The Negative Aspect of Surge in Credit Card usage

• Generally everybody does not meet the eligibility criterion
to hold a credit card. yet in order to enhance their sales and
as part of marketing strategies, companies, private banks etc.
do away with giving these cards to who so ever caters even to
the minimum terms and conditions.

• The loan factor-the cards provide you with huge credit
limits. The consumer ignorant of the forthcoming trouble, keeps
on drawing money from his card and most often when he realizes
his mistake, it is too late. He not only comes in the debt of
the money he withdrew but also the massive interest that is
charged by these companies and banks.

• Many credit card companies provide lucrative offers almost
every month in the form of incentives. These incentives are
basically meant to boost the sale of their product. Incentives
like travel programs, gas purchases etc. are a very common
phenomenon these days. But one should not get lured by these for
it is well said that everything that glitters is not gold.
Initially the cards might be promising for some cheerful moments
but once you become habitual of them they can land you in soup.

• The addictiveness- it is most often the addictiveness of
these cards that is a source of trouble. People, who keep on
drawing from the bank’s or company’s credit, suffer largely.

• Debit cards are believed to be different from the credit
cards. But actually the difference is minute. A debit card can
also be used as a credit card at times and there are some
eminent banks that charge fee with the debit cards too. So more
or less the situation remains to be the same.

When you make up your mind to go for a debit card, consult some
advisor. Know the details of the interest rate, the tenure to
repay the amount and other such things. Do not be carried away
by brand names. Just make a survey first and then decide which
one to go for.

About the Author: Mansi aggarwal writes about credit card.
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