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Credit cards advantages and disadvantages

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1.What are credit cards.
2.History and specifications of credit cards.
3.Eligibility of getting the card.
4.Particular displayed on credit cards.
5.Know your cards.
6.Types of credit cards.
7.Credit card transaction process.
8.Advantages and disadvantages.
9.Safety tips.

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Credit cards advantages and disadvantages

  2. 2. Table of Contents:  What are credit cards.  History and specifications of credit cards.  Eligibility of getting the card.  Particular displayed on credit cards.  Know your cards.  Types of credit cards.  Credit card transaction process.  Advantages and disadvantages.  Safety tips.  References
  3. 3. What are credit cards?  A credit card is a payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder's promise to pay for them.
  4. 4. History and specifications of credit cards:  The concept of using a card for purchases was described in 1887 by Edward Bellamy in his utopian novel Looking Backward. Bellamy used the term credit card eleven times in this novel, although this referred to a card for spending a citizen's dividend from the government, rather than borrowing .  The size of most credit cards is 3 3⁄8 × 2 1⁄8 in (85.60 × 53.98 mm), conforming to the ISO/IEC 7810 ID-1 standard. Credit cards have an embossed bank card number complying with the ISO/IEC 7812 numbering standard.
  5. 5. Eligibility for getting the card: Persons should have a savings current account in the bank. His assets and liabilities on a particular date are reported to bank. A statement of annual or monthly income. He is considered credit worthy up to certain limit depending upon his
  6. 6. Particular displayed on credit cards: Name of the customer 16 digit card number Validity date The hologram and the logo Name of the issuing bank Signature period Magnetic strip PIN
  7. 7. Know your cards:  The bank identification number The first six digits is the bank identification number (BIN) or issuer identification number (IIN) to identify the issuer of the card.  The account number The number between the bank identification number and the check digit is 6 to 9 digits long and is used to identify the individual account number.  The check digit The last digit is the check digit and is added to validate the authenticity of the credit card number.
  8. 8. Types of Credit Cards:  1. The Standard Credit Card: These are general purpose credit cards with revolving balance.  2. Reward Credit Cards: These cards offer several rewards programs in the form of cash, points or discounts, and are intended to influence your spending.  3. Secured Credit Cards: Also known as pay-as-you-go cards, their primary purpose is to give people with bad credit history a chance to reestablish credit.  4.Charge Credit Cards: Charge cards do not have a preset spending limit and balances must be paid in full at the end of each month.
  9. 9. Credit Card Transaction Process:
  10. 10. Advantages:  Convenience--Credit cards can save you time and trouble--no searching for an ATM or keeping cash on- hand.  Record keeping--Credit card statements can help you track your expenses.  Low-cost loans--You can use revolving credit to save today (e.g., at a one-day sale), when available cash is a week away.  Instant cash--Cash advances are quick and convenient, putting cash in your hand when you need it.  Purchase protection--Most credit card companies will handle disputes for you.  Balance surfing--Many credit card companies offer low introductory interest rates.
  11. 11. Disadvantages:  Overuse--Revolving credit makes it easy to spend beyond your means.  Paperwork--You'll need to save your receipts and check them against your statement each month.  High-cost fees--Your purchase will suddenly become much more expensive if you carry a balance or miss a payment.  Unexpected fees--Typically, you'll pay between 2 and 4 percent just to get the cash advance  No free lunch--The high interest rates and annual fees associated with credit cards  Deepening your debt--Consumers are using credit more than ever before.
  12. 12. Safety tips: DO THIS...  Do sign your plastic cards with permanent ink immediately upon receipt.  Do memorize your card PIN.  Do remember that your credit cards and check cards are as good as cash.  Do carry only the cards you plan to use.  Do store unused cards in a secure, locked place.  Do review all plastic card transactions carefully, and immediately report anything you find unusually  Do inventory all plastic cards and  Do notify the post office to put a hold on your mail when you're out of town  Do routinely check your credit report for any unusual or unrecognizable activity.  Do routinely check your credit report for any unusual or unrecognizable activity.
  13. 13. Safety tips: DON'T DO THIS...  Don't loan your cards to anyone!  Don't keep your Social Security number in your wallet.  Don't keep personal information in your desk at work.  Don't give your card, card number, Social Security number or PIN to anyone.  Don't write your plastic card number on a personal check.  Don't give pertinent personal information such as account numbers, your Social Security number, or PIN over the phone.  Don't allow your card out of sight during a sales transaction.
  14. 14. References :  card-process.htm  umber_generator/credit_card_number_generator. php  and-Debt/Credit-Cards/Advantages-and- Disadvantages-of-Credit-Cards  Debit_Card 