Well.... A credit card can be thought of as boon for those who can repay the credit....
Coming back to the point.
The very first bank to introduce credit card in Indian banking system is Central Bank Of India which is government owned bank and one of the former and largest commercial banks in India. This bank is situated in Mumbai which is the financial capital of India.
Something about Credit cards:
Credit card is a type of payment card issued to users to enable the cardholder to pay during exchange for goods and services with money based on the cardholder's limits to payment. A credit card allows you to borrow money from a bank to make purchases when you return the money back which you borrow within 25-30 days during period of grace you don’t need to pay any extra charges but if you don’t pay back within the stipulated time you’ll have to pa interest.
Characteristics:
- • Credit card is a plastic card having a magnetic strip, issued by a bank or business authorizing the holder to purchase goods or services on credit basis.
- • It was firstly described by Edward Bellamy in 1887 in his novel Looking Backward.
- • 85.60×53.98 mm is the size of most credit cards.
Eligibility for Credit Card Holders:
- • Only savings/ current account person in the bank to have a Credit card.
- • On a particular date assets and liabilities of a person are reported to bank.
- • It can be used as a statement of annual or monthly income for a person.
Advantages of Credit card:
- • You can easily make a huge amount of purchase now and over time it is pay off in smaller amounts.
- • As compare to cash, carrying of credit card is more convenient and safer as it mostly accepted than personal cheques.
- • If you used credit cards with responsibility it builds your credit in bank which will be important later on.
- • Time to time credit card users get rewards and benefits like getting back 1% or more amount of money you spend from bank.
Disadvantages of Credit card:
- • If you are not careful enough you will definitely dig yourself into debts.
- • Something users are habitual of using credit cards so easily which cause to overspend.
- • If you missing the payments again and again it can sink your credit score quickly.
- • Sometimes interests over small debts become large amount.
Hope this was informative!!!