What is a credit card? How do I use a credit card ?

             What is a credit card?

A credit card is basically a chip-based plastic card (usually) that contains the credit card holder's name, credit card number, expiration date, CVV, credit card holder's signature, and customer care center details.

Credit cards basically ensure the convenience of the cardholder to spend money. When a user uses a credit card to make a payment, money is not deducted from the savings / current account. Instead, the money spent by the bank or card issuing company gives you the benefit of the rest of the transaction.

The function of the credit card is to facilitate the rest of the transactions of the users. Each credit card has a predetermined credit limit. This means that after a certain amount of transactions, no more money can be spent on credit cards. It can be used again after paying the credit card bill. Usually one month's credit card bill has to be paid at some point in the next month.

              What is a credit card? Who gives in Bangladesh?

In the modern world, credit cards are called plastic money.

In a word, it is a card that a customer can take from a bank or similar financial institution. The feature is that even if you do not have cash in hand, you can make purchases with this card. However, a customer can use or spend a certain amount of money through a credit card. He will have to pay the money after the specified time.

                            What is an international credit card?

A single currency credit card issued by your bank will not work outside the country even though it works within the country. This requires an international credit card. These are usually dual currency credit cards. As currency, it contains Bangladeshi taka and US dollar. However, you can also use Euro or other currencies as currency in the bank.

When you apply for a regular credit card, you must notify the relevant bank or card service representative and they will apply for an international card. However, if you want to spend foreign currency like dollars, you must first approve a certain amount of dollars in the credit card through your passport.

International credit cards or international credit cards are accepted in almost all countries of the world. An international credit card makes it easy for you to travel abroad.

            How can a credit card be made better?

1. Activate a credit card or debit card

Whether it is a debit card or a credit card, it is not suitable for immediate use. It may take 1 to 3 business days for the card to be activated after it is issued. If the card is active, you can receive SMS or email on your mobile.

However, it is best if you call the debit / credit card service helpline to confirm the activation. All in all, the card must be activated at the beginning.

2. Collect PIN number

Debit or credit card PIN numbers will be required for purchases made through POS (Point of Sale) at ATM booths and stores. It usually consists of four numbers. This PIN number is confidential, which is not appropriate to share with anyone.

The card packet may have the PIN number printed on the folded paper. If not, a special helpline number will be provided to collect the PIN number by phone.

3. Know the cost and terms of a credit card or debit card?

Different conditions and charges apply to debit and credit card usage. For example, if your card belongs to the "MasterCard" network, you can use it at an ATM booth or POS or on a website marked "MasterCard". If it belongs to the "Visa" network, then it can be used at the booth / pos and site marked Visa. So you have to be sure about this.

Also find out the maximum amount of transactions that can be done each time or every day. Note the monthly credit card limit. Otherwise you may be harassed while paying the bill.

4. If necessary, get a passport endorsement

If you want to transact at a website or ATM booth / POS outside the country with a card from a bank / financial institution located in Bangladesh, then you have to endorse a certain amount of money against this card in your passport. It is a state rule.

If you do not have a passport, you will not be able to do this endorsement and such transactions. You can go to the debit / prepaid or credit card service bank or financial institution with your passport and get this endorsement there. The endorsement is usually for 1 year, but there is also a chance to renew it. There is a limit to the maximum number of dollars that can be endorsed, which you can find out when you go to the bank.

5. Secure account information

Securely keep a copy of the information you provided to your bank or financial institution when taking out a debit or credit card. If one day the card is lost, or for some other reason the card has to be picked up (replacement) then the basic information will be needed again.

. Be aware of credit card or debit card offers

Different companies offer discounts on debit / credit card payments for their services. In addition, there are many credit cards with which the annual fee of the card is waived if a certain amount is transacted. Find out about these offers. You can find this information on the card's helpline and on the provider's website.

. Confirm card privacy

Debit and credit cards are also known as "plastic money". Because, with these it is possible to withdraw money from your account or make transactions.

Card ATM / POS PIN number is not required for online transactions. The information printed on the card is sufficient, such as card number, owner's name, expiration date and security number (also known as CVC number). So do not give your card to anyone other than a trusted person.

                     Credit Card Advantages ---

There are numerous benefits to using a credit card. Some of the notable advantages of credit cards are:

No one has to go to the door for money to buy something expensive immediately

Using a credit card is more secure than using a debit card or check. Credit card refunds can be easily requested if any inconsistency is found in the payment gateway or merchant service.

Credit cards are available at very low interest rates, often at zero percent interest

In case of credit card expenses, it is possible to earn income from expenses through various offers

If you feel the burden of using the card, there is an opportunity to change the type of card

Shopping using a credit card and paying bills on time can help increase the credit cardholder's bank eligibility index or CIB record.

Reward points are also available in many cases when shopping using a credit card

        Difficulty:

The risk of falling into debt trap

Hidden or hidden expenses

• The risk of increasing the debt burden on the wrong card

              Credit card costs

Most banks now issue free credit cards. However, the annual credit card charges vary from bank to bank. In many cases you can waive some charges with reward points. You can get all the information about the cost of the credit card from the website of the bank from which you want to get the credit card.