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Credit Cards Characteristics

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The main characteristics or features of credit card are alternative to cash, credit limit, aids payment in domestic and foreign currency, record keeping of all transactions, regular charges, grace period or grace days, higher fees on cash withdrawals, additional charges for delay in payment, service tax, bonus points, gifts and other offers.
As we all know, the best alternative to cash is credit card. Holding credit card reduce the risk of carrying various currency pay at the trade counter especially when we go to travel in other countries. Using credit card is way fast and quite easy rather than waiting for completion of cash transactions. Travelling anywhere in the world would not be a problem for credit card holders because it helps them …show more content…

Thus spending on gambling, liquor etc., are not allowed. Islamic credit cards are also not allowed to utilize for non-business and non-commercial goods which means user is allowed to buy goods/services for personal use but not for business or commercial purposes.
Credit limit will be set by the bank set on the credit card. Bank that issuing the credit card need to analyze the credit worthiness of the cardholder before setting the credit limit. This limit of credit is determined by the credit card issuing entity bank or NBFC. There are two types of credit limit which are Normal credit limit and Revolving credit limit. Normal credit limit is usual credit given by the bank or NBFC at the time of issuing a credit card. Revolving credit limit varies with the financial exposure of the credit cardholder.
Credit card aids its cardholder to make payments in any currency of choice. In other words, under this feature, a credit card holder can possibly make payments to merchants present in any corner of the world. Credit card reduces the cumbersome process of currency conversion. It removes the financial complexities often encountered in converting a domestic currency into a foreign currency. A credit cardholder can possibly make payments to merchants present in any corner of the

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