Credit Card: Use And Misuse

Credit cards are the new age plastic money. Like debit cards these can be used to obtain instant cash. However, unlike debit cards, the issuing bank lends the amount withdrawn to the customer. The lending body approves an amount which can be withdrawn using a particular credit card, known as the credit limit. Some popular banks which qualify credit cards in UK are Barclaycard, MNBA credit card, Morgan Stanley Credit card, Natwest Credit Card etc. You could choose from a variety of offers and interest schemes to compare credit card rates and to find the cheapest and the best deal for credit cards .

People with a poor credit history have an an option of secured credit cards where the card holder is required to submit some amount as security. This amount can be equivalent, more than or even less than the credit limit depending on the lending authority. Like the normal credit card the card holder is still required to make regular payment although in case of default payment the lending authority may have use the deposit. Usually a deposit is used only in case of a long delay like 150 to 180 days or when the account is closed.

Credit card security is a major concern for lenders and customers alike. High cost of surveillance have forced banks to adopt means which control credit card fraud to manageable extensive. Credit card fraud is easy if credit card information is stolen or lost due to carelessness. It is crucial to secure card information to be encrypted in non readable format by humans, things like simply emailing card information by some website using SSL may lead to the customer being cheated.

Credit card industry has been reaping huge profits since the business relates a lot on unsecured loans. Ease in transaction and instant cash has made credit card a boon for a lot of people. Although credit card fraud does not pose a major threat to the industry still there is a need to control theft to make the transactions reliable and secure.

Source by MT David

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