Listen to a Business English Dialogue about Credit card
Michael: Hi Elena, have you ever used a credit card for your purchases?
Elena: Yes, I have. A credit card is a convenient way to make purchases without carrying cash, and it allows you to borrow money from the card issuer to pay for goods and services.
Michael: That’s right. However, it’s important to use credit cards responsibly and avoid accumulating high-interest debt. How do you think credit card companies make money?
Elena: Credit card companies make money through various fees, such as annual fees, late payment fees, and interest charges on balances carried over from month to month.
Michael: Exactly. They also earn revenue from interchange fees charged to merchants for processing credit card transactions. Have you ever encountered any challenges managing your credit card?
Elena: Yes, I have. It can be easy to overspend with a credit card, especially when you’re not keeping track of your purchases and expenses.
Michael: That’s a common challenge. It’s important to set a budget and monitor your spending to avoid falling into debt. How do you think credit cards impact your credit score?
Elena: Credit cards can have both positive and negative effects on your credit score. Timely payments and responsible credit card usage can help improve your credit score, while missed payments or high balances can lower it.
Michael: Right. It’s essential to use credit cards wisely to maintain a good credit history and improve your financial health. Have you ever considered the benefits of rewards programs offered by credit card companies?
Elena: Yes, rewards programs can offer perks such as cashback, travel rewards, or discounts on purchases, making them attractive for responsible cardholders.
Michael: That’s true. Rewards programs can provide additional value for cardholders who pay off their balances in full each month. Thanks for the informative conversation, Elena.