Assaignment of credit card-

Curse or Blessing
Credit card
Presented by:
Amitavo Roy
 Table of contents

• What are credit cards

• History of credit cards
• Types of credit card
• Merits and Demerits of credit cards
• Safety tips
• References
 What is credit card

A credit card is a payment card issued to usersto enable the

cardholder to pay a merchant for goods and services ,based on the
cardholder’s promise to the card issuer to pay them for the amounts so
paid plus other agreed charges.
 History Of credit card
A credit card is a payment card issued to users (cardholders) to enable the
cardholder to pay a merchant for goods and services, based on the
cardholder's promise to the card issuer to pay them for the amounts so paid
plus other agreed charges. card issuer (usually a bank) creates a revolving
account and grants a line of credit to the cardholder, from which the
cardholder can borrow money for payment to a merchant or as a cash
advance.
Edward Bellamy's Looking Backward 1887(concept emerged from)
Early charge cards
-Western Union
-oil companies
-and other companies 1921
 -Charga-Plate 1928
-Air Travel Card 1934
Early general purpose charge cards: Diners Club, Carte Blanche, and
American Express 1950
 Types of credit card & Usage
There are hundreds of credit cards spread across dozens of credit card
issuers. The first step to choosing a credit card, is to first figure out the type
of credit card you want. The types of credit cards are given below
• Standard or "plain-vanilla" credit cards :standard credit cards are
sometimes referred to as "plain-vanilla" credit cards because they offer
no frills or rewards . the standard credit card allows you to have a
revolving balance up to a certain credit limit.
• Balance transfer credit cards: many credit cards come with the ability
to transfer balances, a balance transfer credit card is one that offers a
low introductory rate on balance transfers for a period of time. If you
want to save money on a high interest rate balance, a balance
transfer is a good way to go.
• Rewards Credit Cards : Just as the name indicates, rewards cards are those
that offer rewards on credit card purchases .There are three basic types of
rewards cards: cashback, points, and travel.
• Charge Card: Charge cards do not have a present spending limit and
balances must be paid in full at the end of each month.Charge cards
typically do not have a finance charge or minimum payment since the
balance is to be paid in full
• Secured credit cards: Secured credit cards are an option for people who
don't have a credit history or who have damaged credit. Secured cards
require a security deposit to be placed on the card. The credit limit on a
secured credit card is typically equal to the deposit made on the card
• Student Credit Card: may come with additional perks like rewards or low
interest rate on balance transfers, but these aren't the most important
features for students looking for their first credit card. Students generally have
to be enrolled at an accredited four-year university to be approved for a
student credit card.
• Prepaid Cards: Prepaid cards require the cardholder to load money onto the
card before the card can be used. Purchases are withdrawn from the card's
balance. The spending limit does not renew until more money is loaded onto
the card.
• Limited Purpose Cards: Limited purpose credit cards can only be used at
specific locations. Limited purpose cards are used like credit cards with a
minimum payment and finance charge. Store credit cards and gas cards are
examples of limited purpose credit cards.
• Business Credit Cards: Business credit cards are designed specifically for
business use. They provide business owners with an easy method of keeping
business and personal transactions separate. There are standard business credit
and charge cards available.Your personal credit history is used even for a
business credit card - credit card issuer still need to hold an individual
accountable for the credit card balance.

• Subprime credit cards: These credit cards are geared toward applicants who
have a bad credit history and typically have high interest rates and fees.
 Safety tips of credit card
 Practice basic credit card security
 Keep account number private
 Keep your information current
 Be careful with your receipts
 Secure your devices and networks
 Protect yourself online
 Keep your password secret
 Check your account often
 SWOT analysis
SWOT - strengths
-High level publicity
-convenience of usage in various platform
-available in more than 100 countries worldwide
-high profitability due to low competitor
SWOT - weaknesses
-Risk due to online transaction
-Risk from legal action

SWOT- opportunities
-Cashless economy
-increasing trends of online shopping and business
-digital currency increasing

SWOT - threats
-Due to recession, policies are getting complicated
-Lack of ability to pay
-Substitute of financial market
 Business Trends
Business trends (positive overview in business)
• Profitability
• Outlook
• Market

• The industry shows a growth rate of about 3%.

 Detrimental of credit card to the
society
Some detrimental of credit card to the society are given below
• Credit score: while using your credit card wisely can help you to build your
credit score, misusing your credit cards can actually hurt your credit. Part of
your FICO credit score is based on how many accounts you have open and
the ratio of balances to overall credit limits. If you have multiple credit cards
with balances that are close to or at the limit, this will be reflected negatively
in your credit score. This, in turn, can end up costing you more money in terms
of the interest rates you can get for other types of credit, such as a mortgage
or car loan.
• Overspending: when you spend with cash, you are able to physically see
exactly how much your spending. When you spend with credit, it's easy to
overspend because no money actually changes hands, and you don't really
feel the effects of spending. It's tempting to spend more freely with a credit
card since you're not actually sacrificing any of your hard-earned cash at that
moment.
 • Long-term cost: If you constantly carry a balance on your credit cards
and your interest rates are high, you may end up paying the credit card
companies two or three times the amount of what you actually
purchased. If you only make the minimum payments, the amount you
actually repay could be even higher and it may take years for you to
get out of debt, if at all.
• Debt Overload: The "buy now, pay later" mentality that is associated
with credit cards can lead to serious debt overload if you're not using
your credit wisely. If you're continuously charging things to your credit
cards and don't pay them in full each month or you find yourself
opening new lines of credit because your cards are maxed out, you run
the risk of a financial meltdown when you can no longer maintain
payments on your mountain of debt.
• Impact on Financial Goals: The money you're using each month to pay
your credit card bills is money that could be going to building savings or
advancing other financial goals. Rather than paying a credit card
company exorbitant interest rates, you could be using that money to
save for retirement, plan your dream vacation, or buy a home.
Overusing or misusing credit cards can essentially determine the quality
of your current and future lifestyle.
 Merits & Demerits of Credit Card

Merits Demerits
 Convenience  Overuse
 Record keeping  Paperwork
 Low-cost loans  High-cost fees
 Instant cash  Unexpected fees
 Perks  No free lunch
 Build positive credit  Deepening your debt
 Balance surfing  Homework
 Purchase protection  Teaser rates
 Credit reference
A credit reference is information ,the name of an individual, or the
name of an organization that can provide details about an
individual’s past track record with credit rating agencies provide credit
references for companies while credit bureaus provide credit
references for individuals