Plastic money is a revolution the way transactions are made by people now days. It’s now indispensible and is an integral part of our lifestyle.
Few years back there was no term called “On credit” and there were very few sellers (except grocery shop, pan walas) who use to make transactions on credit that too looking at the face value, past transaction history and buyers track records in the past.
Came 21st Century and the scenario has completely changed, now everything and anything is available on credit because customer has been empowered by Plastic money (Buy now pay later). Plastic money has increased the purchasing power of buyers tremendously; a person earning 10000 bucks can spend 10 times of his monthly earning without having any obligation against any individuals. The only obligation is between the bank and the buyer and that too is very confidential.
The benefit buyers have is that they need not carry cash every time, they can purchase anything and everything (Implicitly in there credit limit) based on there mood swings. Currency notes has been replaced by plastic money and the major reason for this shift is the reduce risk involved in currency movement in high-value transactions.
But “there is no free lunch” using the credit limit is bound to attract some charges and one needs to be aware and have a cautious approach.
Though the service provider claim to provide credit card free, but a careful observation of credit card bill reveals that annual fee and service tax on fee is charged to your account. Until and unless you call the customer care there is hardly any chances of fee reversal.
All the credit attract high Interest charges varying between 2-3% month amounting to 24-40% annually. Most of the users are not aware of the charges and the biggest temptation being to pay only a margin amount of the outstanding dues.
If a Cc user keeps on paying only 5% of the outstanding dues he will take at least 10 years to clear his entire outstanding.
There are certain benefit too that one gets by using credit card one gets free record keeping, free reward points, and many other features. Most of the credit cards offer some type of insurance if the purchase is stolen. Some of them offer extra life insurance policies for air travel booked on their cards, special periodic promotions, cash back schemes and balance transfer offers.
Basically it’s a double edged sword so it has to be used prudently
Few years back there was no term called “On credit” and there were very few sellers (except grocery shop, pan walas) who use to make transactions on credit that too looking at the face value, past transaction history and buyers track records in the past.
Came 21st Century and the scenario has completely changed, now everything and anything is available on credit because customer has been empowered by Plastic money (Buy now pay later). Plastic money has increased the purchasing power of buyers tremendously; a person earning 10000 bucks can spend 10 times of his monthly earning without having any obligation against any individuals. The only obligation is between the bank and the buyer and that too is very confidential.
The benefit buyers have is that they need not carry cash every time, they can purchase anything and everything (Implicitly in there credit limit) based on there mood swings. Currency notes has been replaced by plastic money and the major reason for this shift is the reduce risk involved in currency movement in high-value transactions.
But “there is no free lunch” using the credit limit is bound to attract some charges and one needs to be aware and have a cautious approach.
Though the service provider claim to provide credit card free, but a careful observation of credit card bill reveals that annual fee and service tax on fee is charged to your account. Until and unless you call the customer care there is hardly any chances of fee reversal.
All the credit attract high Interest charges varying between 2-3% month amounting to 24-40% annually. Most of the users are not aware of the charges and the biggest temptation being to pay only a margin amount of the outstanding dues.
If a Cc user keeps on paying only 5% of the outstanding dues he will take at least 10 years to clear his entire outstanding.
There are certain benefit too that one gets by using credit card one gets free record keeping, free reward points, and many other features. Most of the credit cards offer some type of insurance if the purchase is stolen. Some of them offer extra life insurance policies for air travel booked on their cards, special periodic promotions, cash back schemes and balance transfer offers.
Basically it’s a double edged sword so it has to be used prudently
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