Credit Card Types and UsesCredit Card: Definition

A credit card is a small plastic card with some numbers embossed on it and which helps to purchase the things with no requirement of cash in pocket. It is 3-1/8 inches by 2-1/8 inches in size and has identification information for example a signature or picture.

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.

History:
It is said that necessity give rise to inventions. Man always invented new things to satisfy his need ands comforts. Credit cards were introduced with same background since its need was felt. Today there are thousand of financial institutions that issue credit cards as compared to previous when the number was less. They have become important sources of identification. The first all-purpose use of credit cards appeared in 1958, with the BankAmerica card, from the Bank of America. This card later was named as VISA card. One more popular card 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.

There are many cases that people fall into no mans land situation when they find a huge debt created on them due to excessive use of credit card. A major part of your property may be washed out. So care must be taken to understand following things.

Identify what are the different types of charges that you will be charged with on making transactions with credit card 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 of and keep our financial condition good so that they can be used in our dark period such as job loss or medical emergency.

Error with Credit Card Statements
In case you have an error on your credit card statements you must inform the credit card company within 60 days from the date of the first statement where the error appeared. Else the credit card 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 they may give penalty for it. If the company 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
In case you lose your credit card don’t get tense. Immediately call up your card issuing company and inform them. You’re 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 possibility of getting bankrupt. In case its ATM cards and debt card the steps should b even quicker.

Using the rights:
Since their his competition going on companies going on we must definitely ask our card issuing bank or organization to offer credit cards with low interest rates and no annual fees to members or alumni. One more trick is to ask tell them that you are planning to go for other credit card 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 your business.
By Yogesh Ambekar
Published: 12/7/2004