Credit card has been capturing a good market in India. Especially the youngsters, who are crazy about the shopping, go for credit cards. But the fact is, when a person shops with a credit card, he usually doesn`t stop himself from spending until the credit limit has been reached. Now by keeping in the profit in mind, the banks offer good amount of credit limit. Anyway they have methods of recovery by law. So there not much risk in offering good amount of credit limit. But the credit holder gets the attitude that, the amount of credit limit is the amount of money available in his pocket. Unfortunately that`s not the case. The credit card holder doesn`t usually think that that the amount is being paid by the bank on his behalf and it has to be repaid, often with interest and annual fees.

Even the EMI option in the credit card makes the credit to be prolonged for long time. But for the banks, the time is money. They keep charging the interest and many other hidden charges on credit cards. Many times customer is paying the interest of 33 percent without his notice. For marketing and promotion sake, shopping malls declare the discounts. But when a customer buys those goods, by swiping the credit cards, it is the fact that the interest added there goes more than the amount of discount received. Even the banks and shopping malls came up with the tie ups to offer the discount on one side and to charge the huge interest on the other side.

Even the late payments imposed by the banks are quite high. That really burdens the pocket of the customer substantially. When the credit bill comes, it is really difficult to track as to why so many amounts have been charged and the bills keep continue to grow for longer periods. So the credit card holders should be using their cards very carefully and the card has to be used for shopping only when it is required most.

Credit card companies in India (and elsewhere), do not give you their card just for your convenience. They really make money out of you. Even though they have heavy expenses to run this business, the money they get from you and shopkeeper eventually results in big profits for them.