Usage Tips and Overview of Credit Cards

by : Barbara Camie



But the seeming ease of using a credit card for buying whatever you want and whenever you want, hide the truth that you have to pay an amount for using them.

Whatever the credit card looks like, it is actually making the most profit for it's issuers by tapping you into a loan with every purchase. You can obtain a short term benefit by taking a loan but you will have to suffer for long term to paying them off. You can easily get a credit card by filling an application form. If the issuer approves your application, they will send you the card with a certain credit limit.

There is a magnetic strip on the backside of every credit card which is encrypted with electronically programmed security information. At the moment you purchase a product using your credit card, the retailer will read the magnetic strip in order to approve the payment. You can use your card at most of the stores depending on the merchant's ability to accept this kind of payment. You can also withdraw cash using your credit card from ATM machines. There are seven major credit card companies that are operating around the globe. They are VISA, MasterCard, American Express, Citi, Discover, Diners Club and JCB. But among them VISA and MasterCard is the most broadly used and universally accepted.

You need to swipe your card on a small machine to purchase a product from a traditional retail store. When you buy a good from an online store, you have to provide the credit card details on the website. You can consider a site as a safe place to purchase if you see a "lock" icon in the lower right area of your browser. A receipt will be sent to you from the website regarding this purchase and a mailed bill also from your credit card issuer with your monthly statement. If you want to get rid of the interest then you have to pay the bill in full.

Credit cards are useful and convenient for recent shopping environment. But the ease of use seems quite little compared with the bothering that you have to face if you can't control the whole procedure. So try to repay your dues in full each month and you will have the maximum benefit from a credit card.