A credit card is a small, rectangular piece of plastic or metal that is issued by a bank or other financial institution.
Credit Card is use to pay for products and services at businesses that accept credit cards. Credit cards impose the need that cardholders repay the borrowed funds.
The credit card issuer may additionally provide cardholders with a separate cash line of credit (LOC) in addition to the usual credit limit, allowing them to borrow money.
Compared to transactions that access the primary credit line, such cash advances often have different terms, such as no grace period and higher interest rates.
Borrowing caps are typically set by issuers depending on a person's credit score. Credit cards continue to be one of the most widely used payment methods for purchasing goods.
Compared to other consumer loan types, credit cards often have a higher annual percentage rate (APR).
Unless there is a 0% APR introductory offer in place for a specific period of time after account opening
interest charges on any unpaid balances charged to the card are typically assessed approximately one month after a purchase is made.
If prior unpaid balances had been carried forwards from a previous month, however, there is no grace period given for new charges.
Visa, Mastercard, Discover, and American Express are just a few of the popular credit cards that are often provided by banks, credit unions, or other financial institutions.
Many credit cards entice users with rewards like airline miles, hotel stays, gift cards to popular stores, and cash back on purchases.
Compared to secured cards, these cards typically have bigger credit limits and cheaper interest rates.