Credit Card is not so popular like its friend the Debit Card. And compare with the latter Credit Cards have an entirely different purpose and use. In fact it is not easy for Banks and Financial Institutions to issues this type of Cards.
Aside from this type of card,there is Debit Card and Prepaid Card all performing different functions. In this article, our focus will be on Credit Cards, what it means, its use and how you can keep it safe.
What Is A Credit Card
Credit Card is type of card issued by your Bank or any financial institution that allows you to borrow money from your Bank or financial. This means that Credits Cards perform two jobs.First borrow money from your Bank(Soft Loan) and two Withdrawal of funds or cash.
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The money borrowed is recorded as Bank Overdraft in your Bank Account statement which is to be paid back on a later day. Each time you make use of Credit Cards to borrow money, it is recorded and you pay back as time goes on.
All borrowed money can be withdrawn through the use of ATM(Automated Teller Machine), POS or even through some payment gateway on the Web. Anytime you use Credit Cards there is always a withdrawal of cash from the related account.
Credit Cards are directly linked to your Bank account. This means that if you have no money in your bank account you can quickly top up your Credit Card and use it(Unlike debit Cards). Your Credit Cards are useful regardless you have money in your Bank account or not.
Issuers Of Credit Cards
There are different financial institutions that issues Credit Cards across the globe. Most Credit Cards can be used anywhere in the world but some can be use within a geographical region. Below are top Credit Cards issuers.
- Master Card
- Visa Card
- Velve Card
- America Express
- Bank of America
- Capital One
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Importance Of Credit Cards(Why Use Credit Cards)
There are various use of Credit Cards and we have a list of few important ones below
- Quick Cash withdrawals
- Easy to use
- Access to cash almost anywhere
- Online payment
- Internet transaction is much easier with your Credit cards
- Money transfer is much more faster and easy
- Airtime Top Up and Bills payment.
- Control over how to spend your money.
- Access to Credit Facilities from your Bank.
- A good way Boost your Credit Score if use efficiently(Mostly Applicable in United States)
- Free online account management tool
- Free Email and SMS alert
- Highly secure with Verified by Visa (VbV)
- Flexible repayment: Full of minimum (15% of outstanding indebtedness) repayment options.
- Interest-free period of up to 45 days
Major Threats Facing Credit Card Users
Like every other Card, Credit cards users have been target of identity theft and various online scam. Below are some major threats that faces those who uses debit cards.
- Theft: Sometimes people target those with Credit Cards and steal their card. With your bank link to your card this is a major problem as you might lose lots of money if not properly handled.
- Carelessness: People are sometimes careless and this is not good. Your card is protected by a security PIN and once someone have access to this PIN and your debit card there is no telling the number of damage he can do.
- Internet: Using your Credit Cards in any website you see is not such a good idea. Some websites save data of your credit cards and that can be used against you.
- Unprotected Credit Cards: The four most important parts of your Credit cards are, the Serial Number at the front(14-16 numbers), the Expiry Date of the Card(validity date), the Name of Card Holder and the CVV 3 digit behind the card(in some card it is 4 digit and its located at the front).
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Now that you have seen that there are lots of threats facing users of Credit Cards, you might get scared. Well it’s okay to be scared but we also have some major tips to help you secure your cards.
How To Keep You Credit Card Secure
- Keep your credit cards safe.
- Take it along anytime but only use it when it is necessary.
- Always keep on the look out when its been used for POS payment.
- Your Credit card serial Number, Expiry Date, Holders Name and CVC is very vital. Make sure no one person get all four details from your card.
- The PIN associated with your credit card should be kept confidential. Strictly to be used by you, close family members and trusted friends.
- Report to your Bank or Financial institution the moment your card is stolen.
- If you notice a suspicious activity in your credit card contact your Bank or financial institution ASAP.
- Ask your Bank or Financial Institution to block any card that you feel is expose to threats.
- Never take a photo of the back and front of your credit card and send to someone you met on the internet.
Mntrends can not possibly cover every area as it relates to Credit Card. But we hope this information of ours help you understand and stay safe as you make use of your Credit Cards. What is your experience using Credit Cards please feel free to use the comment section below and tell everyone about it. Please use the share button below to share our posts on Facebook and Twitter.