Revised June 2007
What you should know… about Credit Cards
What is a credit card?
A credit card is a form of borrowing. It allows you to buy goods
and services without using cash, that is, on credit. A credit
card therefore is a convenient payment instrument and not
intended to be a long-term credit facility. You can apply for a
credit card from a card issuer (usually a bank) and if your
application is accepted, a card will be issued to you with a
When can you use it?
You can use your card locally and overseas in establishments
that display the brand of your credit card. When you make a
purchase with a credit card, you have to sign the sales slip.
The merchant keeps a copy and gives you a copy for your
record. Your card issuer pays the merchant and then collects
the sum from you in a bill that totals your purchases for a
period, usually a month.
You can also use your card to make purchases online. However,
be vigilant about your online retail choices and shop only at
online stores that you know and trust. Always print the invoice
slip or confirmation page after completing your online purchases
and verify the amount billed to you in your monthly statement.
Understanding the monthly statement
The card issuer will send you a monthly statement detailing
all the purchases you have made with the card during the
month. It is important to check your monthly statement carefully
and inform the card issuer promptly if there are any
discrepancies or if any clarification is required. Do also take
note of the following in your monthly statement:
This is the date the statement was issued. All
transactions recorded between this statement date and
the last statement date will appear on this statement.
Payment Due Date
This is the date by which you should pay your credit
card bill without incurring a late payment charge. You
have the option to pay the bill in full, or make a partial
payment subject to a minimum sum.
The amount due denote