Credit Card Definition: “A credit card is a plastic card allowing someone to make a purchase on borrowed money.”
A credit card entitles its user to purchase goods and/or services based on the users obligation to pay the issuer of the credit card back in full. The issuer of the credit card will give the user a maximum credit limit in which the user can borrow against. The user can use the credit card to make purchases or take cash advances.
Credit cards allow the consumer to carry the balance of the credit card from one month to the next. Interest charges will accrue if a balance is carried from on month to the next. The interest amount is determined by the interested rate agreed upon between the issuer and the user of the credit card.
In western culture Credit cards are one of the most popular forms of payment for consumer goods and services.
Types of Credit Cards
There are many different types of credit cards available. Use our resources below to help you determine what credit card may be right for you.
Click on the Credit Card Type to get more information.
- Low APR Credit Cards – Low APR Credit Cards are amongst the most popular credit cards available. If you have no special purpose for your credit card then a low APR can save you money with lower interest payments over time. There are many things to keep in mind about low APR credit cards that can hurt you…
- Business Credit Cards – Keep your business and personal finances separate with business credit cards. This will save you headaches around tax time. Plus you can earn rewards on small and medium business related purchases like office supplies. Business credit cards can help your business get ahead, but there are some downfalls and a few things to be aware of…
- Frequent Flier Credit Cards – If you travel a lot for pleasure or travel for business then a frequent flier credit card will save you a lot of money. For every dollar you spend you will earn a certain amount of “airmiles”. You can trade your miles for flights or other rewards like hotel rooms.
- Student Credit Cards – An effective way to start building good credit is with student credit cards. High School or college students have a better chance of qualifying for student credit cards if they have not built any credit in the past.
- Rewards and Cash Back Credit Cards – Rewards credit cards will allow you to trade your points for nearly anything, sometimes even new clothes. Cash back credit cards will allow you to rebates on certain purchases.
- 0 Interest Credit Cards - 0% Interest Credit Cards have an introductory period where you will pay no interest on purchases and possibly transfers. The 0% introductory period usually lasts about 6 months to 12 months.
