Tuesday, May 07, 2024
Credit cards – once considered a luxury affordable only by the wealthy – are now mainstream for the consumers at large. In the wake of the fourth industrial revolution, credit cards are a part of everyday life.
Sanjana Rahman, a banker by profession, has been using a credit card for the last four years. Usually she uses the credit card during shopping, and is comfortable using a card instead of cash.
Sanjana Rahman said “I have been using a credit card since 2020, because carrying the credit card is flexible when I shop in malls. Besides, when I go to restaurants with my family and friends, I pay with my credit cards.
“When I tour abroad with my husband, we use credit cards instead of carrying USD in cash.”
According to Bangladesh Bank data, credit card transactions increased 16 per cent to Tk 2,903 crore in January 2024, up from Tk 2,506 crore in January 2023. The data indicates that credit card users are increasing gradually in the country.
Industry insiders say there is no hassle in carrying credit cards. Spending is convenient, as users can pay later at their convenience. There are various opportunities and discounts available when paying for purchases.
Currently, several companies are offering discounts to their customers on credit card purchases.
Dhaka Bank’s Managing Director and CEO Emranul Haque said, “The use of credit cards increases occasionally. People purchased many things from shops and used credit cards more ahead of occasion.”
“When country is facing high inflation, the use of credit cards increases as at that time people generally don’t have enough cash to buy necessary things. So, people get used to using the credit card to purchase anything, especially from shopping malls," he said.
“We [Dhaka Bank] rewarded some people who used credit cards and contributed more,” he added.
Credit card convenience
Consumers are buying electronics, furniture, clothes, cars, consumer goods and many other products and services using credit cards. This facility has made people’s lives easier. On the other hand, hospital bills are also being paid with credit cards.
People can use the credit card in emergencies as well.
How to get a credit card?
A customer can get a credit card from a bank or financial institution. However, up to a certain amount of money can be spent on such a card.
If needed, a customer can also withdraw a specified amount through credit cards, though the interest on cash withdrawals tends to be high.
But credit card bills have to be paid within a certain period per month. The credit limit or how much money can be spent or withdrawn is usually fixed by the issuing banks based on the monthly income of the customer.
However, the credit limit may not be the same for all banks due to different policies.
It should be noted that credit card users should spend cautiously, as overspending could lead to financial issues.
Banks offer discounts
Banks also offer discounts to their credit card customers. So if they want to purchase products from shops, then they will get 15 per cent to 20 per cent discounts.
Dutch Bangla Bank, City Bank, Eastern Bank, United Commercial Bank and several eminent banks are offering discounts to their customers at selected outlets on the occasion of Eid-Ul-Fitr.
