LESSON 3 CREDIT CARD

A. READING

(a) Read the reading passage carefully and then answer the following questions.

Ask people wheter credit cars are a necessity or a luxury and most would probably term them a necessity these days. Credit cards are considered a boon for the ready convenience they confer on the user ΓÇô you donΓÇÖt have to worry about carrying enough cash when you go shopping or to a restaurant. Just flash your card, sign and walk out. But there are many who criticise credit cards for the ΓÇÿeasy moneyΓÇÖ syndrome they generate. It is youΓÇÖre careful with your expenses, they can be a handy thing to have around. Hence, you need to consider the term ΓÇÿresponsible usageΓÇÖ and understand the actual significance of living on credit.

Remember that using a credit card does not mean ΓÇÿfreeΓÇÖ credit. In effect, what you are doing is merely postponing payment. While it looks realy good to have to pay only one or two thousand a moth on your card, remeber that youΓÇÖre paying interest on the amound that you ΓÇÿresolveΓÇÖ from one billing cycle to the next. But thereΓÇÖs on precaution we

should add. Always settle a credit car bill in full for two good reasons. First and foremost, if you are not able to pay up now, you should not have spent it in the first place. Second, credit charges tend to be extremely high , ranging from 2 per cent to 3 per cent per month.

There is no shortage of cards on offer. Almost every bank has launched a a card so the biggest hurdle you face is in trying to choose from amongst them.

So, how does one choose among the various on offer? ΓÇ£The factors for choosing a card to resolve around certain differentiating features that one card may offer and the others donΓÇÖt, like acceptability, eligibility, fees, other charges, credit period, cas advance, etc.ΓÇ¥

Cards which carry the Master or Visa affiliation are more widely accepted across the country compared to diners and American Express cards. Similarly, global credit cards are valid even outside India. If you travel regularly within or outside India, thses cards would probably suit you the best, due to their accptability across outlets.

If your credit card is more of a functional accessory while you shop or entertain in you own town, you will want a higher credit limit. Here, foreign and private banks will give you a higher limit. But if you are a value-for-money person who likes the convenience offered by a card, but will alternate between paying by cash and card, you could consider credit cards offered by the public sector banks. Their entry fees are typically lower. Moreover, if need them, you get longer credit periods and lower credit charges. But you may not get a very high credit limit. Many of us nowadays carry more than one card, and under the circumstances, you could use them to segregate your expenses. For example, if your employer reimburse you for certain travel and entertainment expenses to the other card. This will help you account for your official expenses easily.

ItΓÇÖs all very well to be a member of the plastic age. Like all good things in life, a credit card privilege has to be enjoyed.

• get up
• break down
• break sthg off
• turn sthg/sby down

This tells you if the verb needs a direct object (and where to place it).

• believe in something/somebody
• look after sthg/sby

• get on with somebody
• put up with sthg/sby
• run out of something