19. Credit Card

The Credit Card is a very popular and widely used form of electronic payment around the world. It is a personal credit instrument, which allows the bearer to make purchases or obtain services without the need to have cash on hand. Its main characteristic is the possibility of automatic financing of purchases, that is, the user can pay for his purchases in installments, usually in monthly installments.

Issuing a credit card is done by a financial institution, usually a bank, which sets a credit limit for the cardholder based on their income and credit history. The credit card is usually associated with a bank account, but it can also be issued by stores and other companies, which offer advantages and benefits to their customers.

One of the main advantages of a credit card is convenience. With it, the user can shop at thousands of commercial establishments, both physical and online, all over the world. In addition, the credit card allows purchases to be paid in installments, facilitating the acquisition of high-value products and services.

However, using a credit card requires responsibility and financial control. The holder must be aware that the credit card is not an extension of his income, but a form of credit that must be paid. Otherwise, the accumulation of debts can lead to serious financial problems, such as default and over-indebtedness.

Credit cards have fees and charges that cardholders may be charged. Among them, we can mention the annuity, which is a fee charged annually for issuing and maintaining the card; revolving interest, which is charged on the outstanding balance of the card; and fines for late payment of the invoice.

In addition, credit cards offer several benefits and advantages for their holders. Among them, we can mention the rewards programs, which allow the holder to accumulate points or airline miles with each purchase made with the card; exclusive discounts and promotions at partner establishments; and insurance and assistance, which offer protection in cases of card loss, theft or fraud.

For the correct and safe use of the credit card, the holder must follow some recommendations. Among them, we can mention: paying the card bill on time, to avoid charging interest and fines; do not exceed the credit limit of the card, to avoid charging extra fees; and regularly check your card statement to identify and dispute possible undue charges.

In summary, the credit card is a very useful financial tool that offers convenience and benefits to its cardholders. However, its use requires responsibility and financial control, to avoid the accumulation of debts and financial problems. Therefore, it is important that the credit card holder is aware of its operation and its conditions of use, in order to be able to use it consciously and safely.

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