The roles and importance of credit cards nowadays are clearly significant. The credit card users can spend future’s money today. It allows the users to be flexible and increases ability to spend for shoppers. In addition, installment plan gives more times for paying back the amounts used in later periods. There are no barriers for the users to spend in any currency since shops and stores only concern whether the cards are visa or master cards, usable worldwide.( Goyal, A. 2009)
Bank credit card is one of today's most ubiquitous financial instruments For bank management perspectives, identifying the appropriate market for the credit card, interpreting consumers’ needs for the product and developing business strategies are crucial to cope with fierce competition in the credit card market. (Wolters, 2009).
credit cards came with important technology to help facilitate several financial transactions for consumers, but the cards have capacity to support consumers in their everyday life activities without much concerning about cash in hands (Bernthal, Crockett, and Rose(2008).
such borrowing came with high interest rates which might appear irrational, but low transactions costs can make credit cards attractive relative to bank loans. In addition, credit cards offer liquidity services by helping consumers to avoid some of the opportunity costs of holding money .(Brito and Hartley 2005)
service products, such as credit cards, being intangible and experiential in nature are different to evaluate prior to purchase and consumption. Information regarding supplementary services can help consumers make pre-purchase evaluation of credit cards. In addition to pre-purchase evaluation, the impact of supplementary services is studied towards post-purchase evaluation of credit card services.(seminar report 2007).
Credit Card Fraud - Like cash, sometimes credit cards can be stolen. They may be physically stolen (if you lose your wallet) or someone may steal your credit card number (from a receipt, over the phone, or from a Web site) and use your card to rack up debts. The good news is that, unlike cash, if you realize your credit card or number has been stolen and you report it to your credit card company immediately, you will not be charged for any purchases that someone else has made. Even if you don't realize your credit card number has been stolen (sometimes you might not know until you receive your monthly statement), most credit card companies don't charge you or only charge a small fee, like $25 or $50, even if the thief has charged thousands of dollars to your card.( Cargill, T. F., & Wendel, 2006).
Most often credit cards can provide convenience but they can also land you in debt through unwise choices or through no fault of your own. In order to overcome the risks of credit card use, avoid accumulating too may and pay the debt off on time, read terms and conditions carefully and take measures to avoid fraud.
References:
*Bernthal, Crockett, and Rose 2008, Monitoring the Behaviour of Credit Card Holders .available from <http://www.creditcards.com/> .
*From Wikipedia, the free encyclopedia .available from< http://en.wikipedia.org/wiki/Credit_card>
* Wolters, Carry your credit in your pocket", 2009.<http://www.investopedia.com/terms/c/creditcard.asp
* Cargill, T. F., & Wendel org, 2006, An analysis of main and subsidiary credit card holding and spending available from <http://www.creditcards.com/> .
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