what is credit card | Types of credit card

By Team Beta | Article | Oct 23, 2018

What is a credit card?

In today’s modern life where money is of great importance, transactions from the bank are going to be very high, and every small or big cash business has started coming from the banks. That’s why banks have introduced credit card facilities for their customer. Almost all banks offer credit card facilities to their customer.

A credit card is a card in which the bank offers its customers the ability to pay money in the form of lending. For example:- today if you buy a product using a credit card, then whatever bank’s credit card you have, it will pay your money at that time, and you pay that money to the credit card bank after 50 days. That means the bank has paid money for your product and that money would have to be paid by you to the bank in 50 days later.

A credit card is a kind of plastic card which is issued by the credit card bank. It looks similar to the ATM card. With the help of credit card, anyone who has the bank account can do transactions of money anytime and anywhere. Every bank has its own rules and regulations regarding the credit card.

Who owns the credit card has to pay back to the credit card bank after 50 days for their spending what he does within a month. That means bank gives 50 days to credit card holder to pay for theirs lend.

Who can have a credit card?

Anyone can keep the credit card, but before applying for a credit card to a bank, all bank details are checked by the bank about how much your income is, and on the same basis, the bank gives you a credit card and sets its limit. Mostly business people use a credit card.  Most people apply for a credit card showing their jobs. But now a day’s banks are approaching as well to the people for buying their credit cards.

Advantages of credit card

  1. Through the credit card, you can shop online from anywhere.

  2. When we shop with a credit card in many online stores, we can get a discount.

  3. We can organize our monthly shopping through a credit card.

  4. if we keep a credit card, then we do not need to carry cash for shopping.

  5. if we want to buy something and we do not have cash at that time then we can buy at the same time through a credit card and we get 50 days to pay back to the credit card bank.

Disadvantages of credit card

  1. Due to the credit card, we never feel a lack of money, which increases our spending.

  2. Late payments can affect our credit score so we can get trouble later on.

  3. If we do not pay for our credit card then we can get huge trouble.

  4. Nowadays online hacking is increased significantly due to which sometimes a credit card gets hacked and we may suffer a lot of money.

Types of credit cards

There are various types of credit cards are available nowadays.  Here i would share some of them.

  1. Gold credit card:- gold credit card is given to those customers who have higher income or does the transaction of the higher amount with the bank. The benefit of the gold card is, we get the higher limit for withdrawing and higher credit limit for shopping. You may get an extra card with this. That can be used by our other family members.

  2. Platinum credit card:- to qualify for these cards we have to fulfill minimum higher income requirements. It is usually higher than the gold card. We can get a higher credit limit with this card. This card offers complimentary insurance cover and personal concierge service.

  3. Silver credit card:- silver cards are simple cards. Every common people can keep this card. We do not need to fulfill higher income requirements for this card. Its membership fee is very low so if we do the job with normal income can keep this card. We can transfer money with this card as well.

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