A credit card is a plastic carrier linked to a bank account opened in the name of the holder. The owner of the funds in the account is the bank. The holder is the borrower who accesses the revolving credit. The amount of money available to spend on the card is called the credit limit. It is already “credited” to the card when it is issued to the customer.
Unlike a simple loan, where you pay interest each month on a strictly scheduled basis, credit card debt occurs only when you use the money. If you do not use the card, you owe the bank nothing. Another difference is that you can spend any amount within the limit, and interest will accrue on it. You can learn more about the credit card here: Credit card.
Reasons to Apply for A Credit Card
If you are not in the habit of stuffing money into your mattress “for a rainy day,” if friends and neighbors lend you money more reluctantly than before, and if you do not have much money to live on, do not be discouraged. These days the bank can be your assistant in this situation. Or, more precisely, a credit card.
Many may say that banks are unreliable and that debt is not the most pleasant place in life. However, there are at least 10 reasons why being a credit card holder is not such a bad thing.
- You can “borrow” money from the bank at any time, knowing full well when and how much you will have to pay back.
- Multiple use of the card. The difference between a credit card and a normal credit is that you can borrow the same amount of money again after repayment. And again. And many, many more times. And so every month.
- Well, of course, among all the advantages of credit card before an ordinary loan is undeniable is the simplicity of its registration. You won’t need any extra documents other than your identity card. No income statements, no guarantors, no collateral, and no other requirements. The whole procedure of applying for a credit card takes half an hour.
- The availability of credit card facilitates the purchase in on-line stores, where, as a rule, the prices now are much lower in comparison with usual stores (You can learn more about on-line credit card security below).
- Many credit programs provide funds for something specific (apartment, car, appliances, wedding, etc.), and the banks are quite strict in controlling the expenditure of these funds so that they are spent exactly where it was stated. In this light, the advantage of a credit card is that you are absolutely free to spend credit funds as you see fit.
- Quite a few banks these days are teaming up with retail chains and large corporations, launching so-called co-branding projects. The advantage of such projects is that if you pay with a credit card of a certain bank in a certain point of sale, you can either get this product at a discount or participate in an accumulation bonus program.
We would like to list how to handle the card in different situations!
How to Handle The PIN-Code
- Keep your PIN-code separate from your card. Don’t write it down in your cell phone near the number of 24-hour bank support.
- Do not tell your PIN-code to anyone, even your relatives. Do not answer SMS messages, e-mails or phone calls if you are asked to give or send your PIN-code and card number. Even if they are in the name of your credit card company, it is a fraud.
- Cover the keypad with your hand when typing the PIN.
- When you receive a bank card, sign the back of the card together with the cardholder’s signature, if provided.
- Do not expose the bank card to mechanical, temperature and electromagnetic effects, as well as avoid getting it wet. The bank card must not be kept near cell phones, home and office appliances.
How to Make Transactions In ATM
- Do not use the devices, which require entering PIN-code to access ATM, because it is cheating.
- Before withdrawing money from the card through an ATM, check it carefully for any extraneous devices (skimmers). It is better to use ATMs located in large shopping centers and banks.
- When working with an ATM keep unauthorized persons away from it.
- Do not listen to advice and do not accept assistance of third persons when operating with a bank card at an ATM.
- If the ATM has blocked the card, contact the bank immediately and inform about the situation.
- If you see that the ATM has been idle for a long time, spontaneously restarts, cancel your transaction (by pressing the “Cancel” button on the keypad) and wait for the card to be returned. Carry out the operation at another ATM.
- Do not use physical force to insert the bank card into the ATM. If the bank card is not inserted, refrain from using that ATM.
How to Use Your Card in A Store
- Do not show your card for payment if the cashier or merchant does not trust you.
- When paying in merchant network, make sure that the cashier doesn’t pass your card through POS-terminal several times. Otherwise, your card will be charged twice.
- If you sign a receipt, be sure to check the amount indicated on the receipt.
- Demand that you carry out transactions with your bank card only in your presence.
How to Use Your Card Abroad
- When withdrawing cash abroad, use ATMs or branches of well-known banks.
- Before going abroad, contact your bank and find out whether the country you are visiting is at risk of card fraud. For example, limit your card usage in Asia-Pacific (Thailand, Sri Lanka, Singapore, Hong Kong, Taiwan, Malaysia, Philippines, Indonesia, etc.) and Africa (South Africa, etc.), as well as in such resort areas as Turkey, Egypt, and Bulgaria.
General Recommendations
- Connect the SMS-informing service to timely track transactions made on the card.
- Keep all documents on operations with a card.
- Get regular account statements in the bank office or via Internet Banking system.
- Have the contact telephone numbers of the credit organization which issued the card and the card number at hand
- If you suspect that your card data has become known to other persons, always contact your bank to block your card and then re-issue it.
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How to use the card in the Internet
- Use only well-known and trusted on-line stores.
- Make sure the address of the website matches that of your store. Often fraudsters create phishing sites.
- Remember that you do not need a PIN-code to pay by Internet and any suggestion to enter it is an action of fraudsters. Also, never give out your personal data or your bank card details over the Internet.
- Make purchases only from your computer.
- Use a separate virtual bank card to pay for your on-line purchases.
- Don’t access on-line banks and other important services through open Wi-Fi networks in cafes or on the street. Use mobile Internet.
- Remember: banks, services and stores never send letters asking you to click a link, change your password, enter your bank card number and secret confirmation code or provide other personal information!
- Have you lost the phone to which your bank card is connected? Block both the SIM card and the phone right away.
- Try not to buy anything in social networks, especially with prepayment. We generally do not recommend transferring money to the card of individuals (that is, when someone just gives you the number or details of their card).
- To make sure you never lose money on unnoticed payments, never buy extra services by mistake, and always read the rules before you check the “I agree” box and proceed to pay.
We hope that this article has helped you learn what to do with a credit card in different places and situations, and has kept you safe from scammers.