Tuesday, December 12

Using Credit Cards Efficiently

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It is just a piece of plastic the size of a visiting card, which has changed the way we

handle our money and finances. You do not have money right now, do not worry, use

your credit cards, make your purchase, wait for your monthly statement, and pay the bill

in installments. Is that all that there is to using a credit card?

The credit card as a concept started in America. The success and popularity of the

concept led to the global presence and usage of the credit card. A credit card is essentially

a plastic card containing a magnetic strip. The card is issued in the user’s name and

allows the user to purchase products without making any cash/cheque payment. At the

beginning of every month the user receives a statement from his/her bank. The user has

to pay the bank the amount within a specified period either in installments or as a one-

time payment. If the user pays the amount in installments the bank charges interest for the

balance amount.

The bank specifies a credit limit based on the user’s income and financial security. The

user can make purchases using the credit card within the specified credit limit. A credit

card is valid only if it has the user’s signature on the reverse of the card.

Identity theft is an issue of growing concern as more and more cases of online fraud are

being reported everyday. This is primarily due to the increase in the number of users

conducting their transactions on the Internet and the carelessness of the credit card users.

There have been instances where portable card-readers were used to get data from credit

cards and this information was misused. Hackers also use this information to conduct

online transactions.

Some simple tips that can help prevent identity theft and misuse of credit card details are

as follows:

1-Never reveal your credit card details, like account number and PIN (Personal

Identification Number) to others.

2-Be sure to tear all receipts or bills once the transaction is over and the bills are paid.

3-If you are buying something online; ensure that the website is approved by digital

security firms like Verisign, Entrust, RSA Security, etc…

4-Always collect your credit card once you complete your transaction and keep analysing

your bills to check if someone has misused your credit card.

A credit card is a boon for the middle-class citizen as it allows the luxury of buying

things now on credit and paying for them later. One has to remember that all things

should be used in moderation and it is always good to pay one’s bills on time.

With Perfios, you need not worry, as you can monitor your credit card usage, and know

when to put a stop on excessive spending. Perfios also reminds you to pay your credit

card bills on time. So sign-up for Perfios and use your credit cards efficiently.

The credit card as a concept started in America. The success and popularity of the concept led to the global presence and usage of the credit card. A credit card is essentially a plastic card containing a magnetic strip.

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