Credit card and its advantages

Anybody having a good reputation can obtain a credit card from a bank. A person need not have money in his bank to get a credit card rather it is a type of overdraft facility. The name, photo signature of the customer, the name of the issuing bank and the date of the validity are inscribed on the credit card. The card holder can buy goods and services with the help of a credit card. He keeps on depositing the money used as per agreement with the bank.

The main advantages of having a Credit Card are:

  • The card holder need not to deposit advanced money with the issuer of the card however he or she maybe asked to open an account.
  • Credit card allows credit facilities to the card holder.
  • You need not to carry cash, purchasing can be made conveniently.
  • Credit card also useful in financial emergency.
  • Some rewards, incentives or gifts are available to the card holder.
  • Credit Card also provides many travel benefits such as discount on ticket bookings, travel insurance etc.
  • They are safe as they provide features like fraud protection and insurance cover.
  • The credit card holder enjoys a good reputation.

However it also carries some risks with it such as interest charges, spending more, financial strain etc. But using it cautiously will help you to manage your finances.

Saamra Rizvi
Saamra Rizvi
Saamra Rizvi is a Communication expert, and trainer. She is a CS, and Law graduate from Lucknow University. She is a speaker in ICSI (Institiute of Company secretary) . Given various soft skill session in Lucknow ITI. In the pandemic situation she also provided online skill session to various entities. She is also attached to a children educational institute and support children with her skills .

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