It permits the person named on it to charge purchases or services to his account charges, for which he will be billed periodically. This information is checked where we use it; for example, by automated teller machines (ATMs), store readers, Internet computers, and banks.
It is said that necessity gives rise to inventions. Man always invented new things to satisfy his need and comforts. Credit cards were introduced with the same notion since their need was felt. Today, there are thousands of financial institutions that issue such cards, in comparison to previous when the number was less.
They have become important sources of identification. Their first all-purpose use appeared in 1958, with the BankAmerica card, from the Bank of America. This card later was named as VISA card. One more popular one was also renamed from Master Charge card to MasterCard.
The digitally encoded credit card permits its user to borrow money or buy goods and services on credit up to a pre-decided spending limit.
Identify different types of charges you will be charged on making transactions with one; for example, what are the late fee charges? The best way to avoid financial problems is to keep your debt burden light. The best way is to make smart use, and keep financial condition good so that these can be used in dark periods of job loss or medical emergency.
Error with Credit Card Statements
In case you have an error on these statements, you must inform the card company within 60 days from the date of the first statement where the error appeared. Else, the company has no compulsion to look into or take action. Present your complaint along with supporting papers and receipts. The company then takes appropriate action and rectifies the problem.
If the company still doesn't reply, it may give a penalty for it. If it sends you an explanation but doesn't correct the error, and you are not satisfied, you have ten days to send another letter explaining why you still refuse to pay. If the company then reports your account as illegal, it must also report that you believe you don't owe the money.
On Losing the Cards
Immediately call up your card issuing company and inform them. Your account will be closed, and no other person will be able to make illegal use of your card. If you don't convey the company about the same, there is a possibility of getting bankrupt. If it's an ATM or debit card, the steps should be even quicker.
Since there is a competition going on, companies should surely ask the card-issuing bank or organization to offer ones with low interest rates and no annual fees to members or alumni.
One more trick is to tell them that you are planning to go for another company unless it can give you a better rate or lower or no annual fees. The company will certainly think and might agree on your wish since it can't afford to lose on business.