‘Credit cards provide financial flexibility’

Credit cards offer convenience in making purchases as it eliminates the need to carry cash and provide a quick and easy way to pay for goods and services online or in person. Credit cards provide financial flexibility by allowing users to make purchases even when they do not have cash on hand, which is particularly useful in emergencies or when unexpected expenses arise.

Many credit cards are tagged with rewards that can enhance lifestyle with benefits like discounts, cashback or buy-one-get-one on everyday purchases, said Zakir Hossain, Head of Cards at AB Bank PLC, while talking to The Business Post recently.

“We [AB Bank} offer three variants of cards - Mastercard Gold, Titanium and World - providing access to a vast network both locally and globally,” he said.

He said, “AB Bank's credit cards are also creating an impact on lifestyles by offering versatile benefits and privileges to our customers. We offer three variants of cards namely Mastercard Gold, Titanium, and World providing access to a vast network both locally and globally.

“Locally, our cardholders can access more than 1,00,000 merchants and 15,000 ATMs, whereas globally the cardholders can access more than 40 million merchant points with access to more than 2 million ATMs. Users can enjoy EMI facility with more than 200 partners, discounts, cashback offers, and access to airport lounges, including Hazrat Shahjalal International Airport and over 1,500 Priority Lounges worldwide.”

“We also provide seasonal offers like cashback at popular brands such as Aarong, Yellow, Unimart, and many more, along with discounts at a large number of outlets which include clothing, shoes, groceries, hotels and restaurants. During Ramadan, we have Buy-One-Get-Four Iftar offer and Buy-One-Get-Three Sehri Offer at Hotel Serena and Buy-One-Get-One offers at 5-star hotels nationwide,” he added.

Zakir said that managing a credit card responsibly can have great benefits and be a convenient way to use extra funds. Using the credit card smartly will benefit the cardholder in many ways; like savings and in the process earning reward points which can be used to offset annual fees.

Customers should learn to capitalise on the interest-free period of 45 days available with credit cards and ensure they always pay their credit card bills on time, if possible in full, to avoid late fees and interest charges, he stressed.

He continued, “Our takeout to the customer is familiarising yourself with the rewards, cashback, or perks offered by your credit card. Take advantage of benefits such as discounts, cashback offers, or travel rewards without overspending or making unnecessary purchases.

“AB Bank provides customers with smart opportunities which they can also utilise to get discounts and cashback offers to get more value on their purchases. However, it is crucial to spend sensibly and avoid overspending to maintain financial steadiness.”

“A customer should be cautious of overspending. Only use your credit card for purchases that you can afford to pay off in full by the due date. Avoid carrying an outstanding balance from one month to another or skipping monthly repayments month, as these can lead to costly interest charges and end up creating a long-term debt trap,” he added.

The senior banker said, “We are relatively new in the credit card market and we have grown exponentially over the past three years. As a result, we have experienced a substantial growth of 700 per cent in terms of credit card users since 2020.

“We currently have over 32,000 credit card customers and it’s gradually increasing every month. It is evident that AB Bank's credit card offerings have been attracting a growing number of users, especially over the last three years, given the extensive network of merchants and ATMs both locally and globally.”

Zakir said, “We are competitive in the market and are working towards bringing new features, focusing on digital onboarding and payment system, which we soon bring forward.”