Singapore’s majority cannot survive without a credit card

Singapore’s majority cannot survive without a credit card, yet most of us don’t understand how a credit card works. This post is dedicated to explaining the working principles of a credit card.

What the word credit card means?

These are famously (or infamously, depending on your experience using credit cards) defined as “plastic money”. It enables the user to spend the money without actual cash in hand. Credit cards come with a pre-approved credit limit from the bank and this limit indicates the amount that the bank can lend you for that month for your purchases.

How credit card works after you made a purchase with it?

There are many associated bodies which work jointly to process each transaction smoothly. The following will give you an idea about this process.

It’s hard to believe but this process is complicated. To make ...