CHARGE IT!

Very soon we’ll be living in a totally cashless society. Yes…we’re talking about that thin little plastic card in your wallet. Most of us are familiar with debit cards. When swiped, funds are immediately deducted from your savings or checking account, and of course your payment will not be processed if your account does not have sufficient funds. Credit cards differ in that, when swiped, once the payment is within your credit card limit, the funds are actually paid by the bank or financial institution that issued the card. You, the card holder, would be required to repay the bank at a later date, possibly with interest. You can also use your credit card at the ATM to withdraw cash; this is known as a cash advance. Credit cards can be viewed< as a pre-approved unsecured loan from the bank. The maximum amount of the loan would be your credit limit, and this limit varies amongst clients as different clients may qualify for different amounts. Most people can obtain a credit card with little difficulty once the approval process is met. Getting a credit card is easy… living with a credit card is a lot more challenging.

Get all the information you need to about your credit in the latest issue of Basia Magazine. Pick up your copy today!