In modern days like this, many people have at least one credit card. It is a plastic money that you use to pay for almost everything from buying books online to paying your airplane tickets. Although the number of city dwellers that use debit card is increasing, credit card users is still high and growing steadily. Credit card issuers which are banks and other financial companies compete one another to attract youth especially college students to apply for the credit cards scheme that they offer. When you use your credit card to pay for consumer goods that you buy at a supermarket, actually you use a bank's money. In other words you are borrowing money from the bank that has issued the card for you. You will have to pay back the money that you borrow (loan) plus some interest that is accrued to the amount of money that you owe from the bank or financial institution.
Banks such as city bank or HSBC as the issuers of your credit card make money from the interest rate that they accrue to your loan. The higher the amount that you owe from the bank the higher will be the amount of interest you will have to pay. So, when purchasing a new electronic product at a mall, be aware of the annual interest rate and other hidden fees that will be charged upon your credit card when you pay it back. It is important to be always informed with the current interest rate on your card so that you know the best time to shop, which is when the rate is low. When you purchase goods with lower interest rate, you will be able to save money. This strategy can help you keep out of being trapped in debt. Also read: What she thinks about credit card; Robin pays off her credit card debt; Getting Out of Credit Card Debt; Best Student Credit Card