Friday, April 22, 2011

Know More About Credit Cards and Its Benefits

A credit card is a small plastic card issued to users as a system of payment. The new generation is said to be a cashless society as the use of credit cards increases especially with e-commerce on-line shopping and other transactions.

Image via Wikipedia

A cardholder enjoys various benefits such as  are convenience, easy monitoring of expenditures through the statement of accounts, credit cards are accepted worldwide which is most beneficial to travelers, and other perks offered by the card issuing bank.

It allows the credit card holder to purchase goods and have services from the merchants (stores, establishments etc.) for the convenience of a credit line by the issuer.  Banks and Credit Unions usually issues credit cards to consumers (or the credit card holder). Having a credit card is also like a cash advance from the issuer and pay later subject to interest charge.

A statement of Account is being sent to the consumer or user with the full details (including interest charges) of the purchases made for a month period coverage. Any unexpected charges indicated should be reported by the issuer and ask reconciliation of the statement. The payment can be partial, means a minimum amount as specified in the statement (with interest charges) or the full balance on or before the due date. Cardholders may arrange and opt to choose automatic deductions from their bank accounts as long as it has sufficient funds to avoid the hassle of paying the credit card monthly.