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Just like a coin has two sides, everything has its cons and pros, same is apply for Credit cards. Credit having huge advantages like low cost EMI, discount offers, Buy now pay later,best alternative to cash,you don't have to keep cash with you, payment via credit card will give you cashback, points, easy loan approval and many more,credit give you only benefits if you use it in proper Manner like paying your payment before due dates.
Why credit card become so common nowadays? In every
In financial year 2022, nearly 73 million credit cards were issued in India. The cumulative number of cards increased constantly in recent years and even recovered quickly from falling numbers during the lockdown from the end of March to the end of May 2020, amidst the first wave of the coronavirus (COVID-19) pandemic.
I was wandering why banks was so interested in issue the Credit Card. Even bank force to issue credit card to me as neither i have salary account nor i gave Income tax. I got the credit card against Fixed Deposit,With 90% of my FD amount as limit of my Credit Card, just simply fillup the form of credit card against FD there was two options of credit card like international and rupay credit card. I opt for your international credit card, after a week i got credit card in my hands with no extra formalities by bank.
How Do Banks earn from customer's credit card?
It is understandable that we benefit from credit cards, but what is the benefit of the bank of issuing the credit card. Profit from cardholders comes mostly from huge amount interest fees, interest rate of late credit card payment is too high. However, banks can also make profit from credit card annual fees, transaction fees, and penalty fees.
Even if you don't pay any fees, banks will still make profit from your credit card account as long as you make purchases from it. That's because they charge whenever we used the credit card of merchant bank account for purchase on every transaction. This interchange fees are charge as a percentage of the transaction amount and usually range from 1% to 3% depending upon the different bank. So,the more you spend each month by using your credit card, the more money the bank makes from you, although if you don't pay your due amount timely then get ready to pay the interest ranging from 30% to 40%.
well credit card is beneficial for both customer as well as it customers but in different way, I used the credit card when it necessary to buy electronic Items like mobile, Television etc at offer price. I never buy anything which over to my budget, after buying from credit card, i never waits for installation, i credit whole amount at a time to clear my dues, in short use the credit card only to grab the amazing deals.As I strongly believe in jitni chadar ho utna pair failna chahiye (limit the expense according to your earning)
Thankyou for stopping by
@gargi 🙏🏻🇮🇳