How it all works?
Using a credit card is similar to applying for a loan; you are essentially borrowing money for something you want or need. You are responsible for paying back that money in a fixed period of time, but this process is not as simple as it sounds. People often take credit cards lightly and forget about the fact that the premiums they will have to pay are nothing but a liability. For example, David, a college student wants to buy a few things to decorate and furnish his house, he uses his credit card and buys a mini-fridge, cabinets and a bunch of other stuff, spending a total of 500 US dollars. Now every month the bank will send a notice to David stating the total amount of money due, the extent of the overdraft facility and when is his deadline to pay the sum back to the bank. There are two things which can happen, either David can pay all he has spent using the credit card on or before the due date, or he can choose to pay the minimum amount due, on or before the due date. In layman terms, if David pays the sum of 500 US dollars on or before the due date, he can avoid paying interest on the borrowed sum. Still, if he only pays 100 US dollars (the minimum owing amount), then the rest of the 400 US dollars will have to pay with a certain percentage of interest on the remaining amount. For all credit cardholders, it is essential to make before the due date and try to pay more than the minimum due amount as it will save you money in the longer term, paying on time is also crucial as it impacts your credit score, banks will only give you a credit card if you have a good credit score, which is a reflection of your credibility of painting payment deadlines.
The core idea of a cashback is similar to that of discount, and the only difference is that to avail this discount you need to use a credit or a debit card depending on the seller. Most online websites and multinational online sellers use the cashback strategy to lure in more customers and boost sales. Credit cards are one of the significant contributors or cashback facilities, and banks have tie-ups with these websites to provide cash back on their credit cards, this also helps banks to gain more customers. The customers can use these credit cards for buying products which would otherwise cost more as compared to buying in cash or any other medium.
Safety of transactions
There is no doubt that using a credit card is way safer than paying with cash, and electronic payments make sure that the transaction is well documented and leaves a trail which cash payments do not. It also helps us steer away from any kind of fraudulent activities, in case of theft, a credit card can easily be traced whenever it is used. Since it is protected by a password and OTP (One Time Password), it becomes almost impossible for anyone to use it apart from the owner. Once you inform your bank that the credit card is missing, the bank will block the card so that no transactions can be made.
Gambling in an online casino
Recently the British government has decided to ban gambling using credit cards as they think that it might lead to individuals drowning in debt, in turn ruining the economy of the country. Still, players around the world don’t believe so, according to USGamblingSites.com, it is easy and straightforward to use credit cards in online gambling houses and casinos in the United States of America. Mostly these cards are used for depositing money in gambling accounts, and the limits vary from casino to casino. According to a survey conducted in the United Kingdom shows that more than 20% of online gamblers use credit cards and that’s a lot given the fact that there are more than 10 million people engaged in online gambling, just in the United Kingdom.
Credit card is an excellent tool if used to your advantage, and it is vital to treat this as a loan rather than free money, one of the significant factors why credit cards earn a bad name is because don’t take it seriously. It is essential to thoroughly go through the terms and conditions offered by the bank before you decide to get a credit card, also think about the fact if you need a credit card or not as the interest rates are high, so anticipate the possible impacts of not paying your dues on time.