Credit Card -It's Uses and Features

You might have seen persons just picking a card with a lot of 8-10 cards in their purse standing in a queue, at any store or ticket counter. What these cards are actually which they are carrying? It’s Credit card. Now the question is that what is credit Card? 

Credit Card is a card issued to a consumer by any Financial Company which provides the holder an option to borrow funds, pay bills. Credit Cards are used for short duration of financing, as after a month (in almost all the credit cards or nearby) from the date of payment done by that card, the company charges interest and that too at a very high rate. Also there is a pre-set limit of the amount which can be borrowed according to the card holder’s credit. A credit card is a thin plastic card, usually 3-1/8 inches by 2-1/8 inches in size that contains identification information such as a signature or picture, and authorizes the person named. The Credit Cards were first brought in use by the US during 1920’s at the time of First World War. ­

These Credit Cards can be of great use if used with intelligence but many of the people fails to do so and faces great interest by the finance company. Another very important use of Credit Cards is that it has recently become a very prominent proof of your identification. You can easily rent a car using that which is a basic requirement. It provides you a period of 30 days to pay the amount you have spend buying something or paying any bill before finance charges kick in. 

But you would have definitely heard that idiom that “it’s easy to say and hard to implement”. The same happens here, the Credit Card holders use to carry a balance on their credit card from month to month, paying finance charges that can go up to a whopping 23 percent.

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