Plastic money has become one of the most important possessions of upwardly mobile urban Indian consumer. Credit card works great when you want to spend, or you need immediate cash but these aren’t without their flip side too. The phenomenon called credit cards is is the new born baby in the Indian financial market and has acquired mammoth proportions in the recent times. The origination of plastic money can be credited to the UK over 40 years ago. Barclay Card was the first pre-paid plastic money to be launched in 1966. This plastic money operated like a charge card with the bill having to be paid off in full each month and had the credit limit of 100 pounds only.

Today the there is a dramatic change in the scenario. Talking of the prevalent situations of India, one can see that there are about 1,500 credit cards to choose from. The numbers have intensified the competition among card providers, thus leading to a fragmented market catering to card users across the classes, financial backgrounds and different credit histories. Almost anyone can be a credit card owner as these are perceived as the ones which make life more convenient. .

Credit free period associated with the credit cards helps you in not paying interest charges. The best use of plastic money is to-buy goods or services on credit for a stipulated period(known as grace period) and then paying off the amount in full when it’s due. No interest charges need to be paid if the card user repays the money within the time. The convenience of not paying interest charges is available on the balance amount till your due date is only due to credit free period available in your plastic money. Without a free period, the concerned bank may impose a finance charge from the date you use your card or from the date each transaction is posted to your account.