Credit card as a convenience productCredit cards have blessed us with enormous comfort. Buying something expensive is no longer a problem and the shopping experience is quite tension-free since you do not have to worry about the cash being stolen.
For some, it is luring as it offers rewards and cash-back while for others it is a cool status symbol to flash a credit card. There is a wide variety of credit cards available with various issuers. For instance, gold and platinum cards are meant for premium segment customers with high incomes and net worth. These premium segment cards have higher credit limits and also benefits like travel insurance but these come with higher charges.
Co-branded cards are increasingly becoming popular. They carry the name of a third party, which may be a retail outlet, airlines and so on. They usually benefit you when you purchase products from the third party e.g. ICICI bank-ebony credit card.
A credit card is a useful tool, only when managed judiciously but a lurking danger if you mismanage it. Due to the ongoing financial crisis, banks have become wary of the credit card defaults and are changing their credit limits, doing away with interest free periods and charging higher interest rate on the credit borrowed. ICICI bank has recently announced that it will block all the cards of its customers in case they default even on a single one.
Therefore it becomes imperative for you to handle your credit card with utmost care.