What is a credit card?

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Problem posted by: Anonymous

Hi to all. I have simple question: What is a credit card ? I need possible definition. Thanks in advance

Answers:

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Answer posted by: Anonymous

A credit card is a banks agreement to give you a small, temporary loan. You use this money to pay merchants for items that you want. Pretty much any bank will issue one. Really shop around before you sign for one because the longer you stick with one credit card, the better your credit score will be!

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Answer posted by: Anonymous

There is a glut of credit cards out in the market and youve probably head of a few of them, like: MasterCard, Visa and Maestro. Credit cards are not the only cards out there and you would be forgiven for confusing them with debit cards and charge cards. Debit cards are effectively plastic cheques, the cost of any purchases you make is, more or less, immediately deducted from the account it is linked to. A charge card allows you to purchase item and sometimes even withdraw money which it requires you to pay off every time they send you a statement, usually on a monthly basis.

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Answer posted by:

Physically, a credit card is a piece of plastic, 3-1/8” x 2-1/8”, that carries information that allows you to make purchases now, and pay for them later. The credit card is your identification. You’ll often find that when you’re in a situation where you need ID, you’ll be asked if you have a credit card. A credit card gives you credibility in the consumer world. It tells merchants and other business establishments that you’re financially responsible – a rewarding state to be in these days.

Electronically, a credit card is a pretty complex device. Everything on a credit card is a code that stands for a specific bit of information. And there’s a ton of it – some that you can see, some that’s hidden. On the face of it, you’ll find a series of numbers. While these numbers as a group, identify you, individually they identify the financial institution you deal with – the one that issued you the card.

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Answer posted by: Anonymous

Credit cards charge interest on any balance remaining on the card after the payment date on the statement. The interest rate can vary from one credit card to another, but if you clear the balance in full each month before or on the payment due date you will not get charged any interest. There are other fees to look out for, and this includes fees for cash transactions such as withdrawals, late payment fees, over the limit fees, and annual fees. All of these can vary from on card to another. There are a number of benefits when it comes to using credit cards. Many people enjoy the convenience and ease of being to make purchases without having to carry around cash or write cheques. You can also use your credit card to make purchases online and via the telephone. Plus, of course, you can enjoy a period of interest free credit, and you can spread the cost of purchases to make them more affordable.

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Answer posted by: Anonymous

Credit cards allow you to spend money without carrying a lot of cash around and without writing a check. They�re extremely convenient, especially when you�re on a trip or don�t have access to cash. If you pay your credit card bill in a timely manner, it helps you establish a solid credit score, which is useful when purchasing expensive items such as automobiles or a home. There are three basic types of cards�charge cards, credit cards and debit cards. The charge card extends credit for about one-month and the balance must then be paid in full. The American Express card is the best example of this type of card, although there are features on certain American Express cards that allow you to carry a balance from one month to the next.

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