Bank of america student credit card
The use of credit card in the society is increasing manifold. Probably no commercial instrument has so much impact on business as the credit card. The consumers of credit card range from teenagers to the octogenarians, Think of the advantage that one need not carry any paper currency for any purpose. Carrying the paper currency is risky as it may draw the attention of unscrupulous elements.
The basic reason for the introduction of credit card is economics. It facilitates persons to spend more and make money available on credit. There is a service to this facility which is the benefit of the lending agency. Thus otherwise stagnant funds are put to rapid circulation which stimulates the economy.
Consumer Society and the Credit card System
Borrowing of money and services are as old as human existence in civilised society. In return, they promised to repay their debt in the future and pay the lending agent a fee for his service. Until the 1970s, the financial institutions such as banks were extending loan only for a substantial purpose which generate a commodity that can be mortgaged. Thus, loans were made available for a specific purpose, like buying or building a house (where the credit is called a mortgage) or financing the purchase of a new car. The lending institutions got back the money with interest in specific instalments.
The credit card industry began to develop in the late 1970s which made it available to huge numbers of people. No collateral is required when applying for a credit card. Instead, the banks look at the trustworthiness of its clients by checking their past behaviour when borrowing money, which is called their credit history. The monthly limit of credit was fixed by the fixed income the client is earning from his profession or business.
However, credit cards are issued to a plethora of purposes like booking a vacation or buying a pin. It is not only banks that extend credit to large numbers of qualifying individuals. Many retail institutions like department store chains offer their customers their own credit cards in order to turn them into loyal clients. This acts as a tool to boost the business and to make an advertisement of the particular organization. In consumer societies lending of money generates more economic activities and therefore creates more jobs and more wealth. This has to be based on the premise that the financial institutions grant their credit wisely to responsible consumers.
The band of consumers using the credit card has increased leaps and bounds. The mode of carrying cash has almost disappeared in the prominent consumer societies. This facility is now enjoyed by students also who has to only produce an assurance of repayment. The Bank of America Student Credit Card is a pioneer in this aspect.
The salient features of Bank of America Student Credit Card are
• No co-signer is required
• No annual fee charged for this service
• Build your credit history for future life
• Online Banking Service
• Total Security Protection
• Optional Mini Card
• Incorporation of photo enable ease of identity
The Bank of America Student Visa Platinum is ideal for students who would like to begin building their credit. It offers various benefits and services such as access to online banking, Total Security Protection, and an optional Mini Card. The interest rate for purchases and balance transfers is above average for a student card and it is not ideal if you plan to carry a balance. However, the annual fee is waived. All that you have to do is to maintain a minimum balance. You get the access to the credit card that too without the co-signer.
Possibility of fraud on Credit Card
Most of the students lead care free life. This is probably the initial period of their life when they are independently managing the finance. The shortness of life experience may infringe the safe use of the credit cards.
The possible routes of fraud are;
• The theft of the wallet or the briefcase or the card alone when it is not kept properly.
• Most of the card theft takes place online, when card numbers and details are orally transmitted.
• Unscrupulous employees of the service companies may misuse the card data of customers for committing fraud or sell them to other fraudsters for a price.
• Employees of stores extract the information from the card slips and pass them on to others who are capable of using the data to generate a duplicate card.
• Some also resort to a method called 'skimming' which is making copies of the customer's card in a clandestine operation.
• Cards are also stolen from mail services before being delivered to cardholders.
• Credit card details such as the pin number are also obtained by closely watching pin pads while entering the data by placing a hidden camera in the ATM cabin itself.
Few basic precautions can obviate the problem Remember that the comfort of credit card is not without a price. You have to be eternally vigilant. It is very important to keep credit card information, such as passwords and pin details at home in a safe location, so that loss or theft of the card can be reported immediately; this information should never be written along with the card nor carried in a wallet. These should find a place in your house. Never use easily guessable numbers as pin such as your house number or telephone number. Always watch out if anybody is closely scrutinizing the activity in the ATM cabin. Frequent change of pin numbers, hiding the pin pad or screen when making cash withdrawals and frequent checking of card accounts will also go a long way in preventing frauds
One cannot but marvel at the mind-boggling impact of credit cards on modern life and business. It is prudent for youngsters to adopt the habit at young age itself and cultivate the habit of carrying and using it without falling prey to any fraudsters.
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