In this post I’m gonna share you the whole information about credit card like What is credit card actually? Who Actually Pays for your Credit Card Benefits? Should you Own a Credit Card?, and more.
We use the bank to withdraw or deposit money or to take a loan. In order withdraw and deposit money, the bank provide us a debit card so that we don’t have to come to the bank.
Similarly, If we want to buy something, or to take short term loan, we have provided credit cards.
It is not given to all, it has been given to those on whom the bank trusts, means the people who earn by working every month.
The bank does not earn from the manufacturing plant. The people deposit their money in the bank and the bank gives that money on loan and earn interest.
The Interest is a major way to earn money of banks. Therefore the more people take loans, the more it will be beneficial for the bank.
Taking a loan from a bank is a very complicated process. We have to go to the bank frequently, verification is done, we have to give cancel cheque and many more.
That’s why a person takes a loan only when their is a great compulsion.
To make it simple, the bank start giving credit cards, which is the shorter version of the loan and its access is very simple.
The bank has given an easy digital card to its trusted customers, so the people’s habits get spoiled.
Because when someone take a credit card so he doesn’t feel like he’s taking a loan, even they feel like when they will need money it should be with them, so they keep this.
As soon as customer takes the credit card the bank introduced the offers.
The offers are also very interesting like loan for 50 days without any interest and keep paying EMI throughout the year, cashback, reward points, free movie tickets, no cost EMI, and many more.
But have you think ever that why the bank giving everything for free.
See, bank gives 1 lakh of iPhone for a year with no cost EMI without any interest, so what is their advantage in this process, even they are giving it to an unknown man.
On today’s date, when people sell air tied in balloons, so why is the bank giving everything for free.
The bank is not doing charity, by spending the large amount of capital on staff and marketing.
Unless the bank earns, it will not give you anything for free.
The money for all these is taken form your pockets and How?, now you will understand in this post.
We will understand each of concept of banking system and their credit cards in detail.
What is the credit card actually?
The Credit is a type of digital card provide by banks in order to take short term loans for buying something online.
Bank gives credit card to only trusted customers, I mean who are able to earn money on monthly basis.
If you want credit can, then you can also apply for this.
The process of applying for credit card is similar to the debit card.
The credit card works in such a way that if your account has no money, and you wanna purchase something online, then the bank will pay for that.
But you will have to return that money at the end of the month with the interest they have charged.
How to use Credit Card? Rules of using credit card When you use a credit card there are certain rules for this, which the bank has named the credit card cycle.
Let’s understand the credit card cycle with an example.
Original Credit: www.dheerajpatidar.com