What Is A Credit Card

What is a credit card ? Many people ask this question everyday, and to put it simply, a credit card is given out by a credit card provider and they are designed to pay for things in shops or online. You can also use credit cards for balance transfers and taking out cash (also known as cash advance or cash withdrawal) from an ATM.

Credit comes in many different conformations and proportions which includes mortgages, loans, overdrafts and credit cards. Now that you are aware of what credit is, lets have a look at the different options.

If you do not clear your balance at the end of each month, interest is then added to the amount you spend.

Excellently put, credit is any contract where you buy services or goods now but you agree to pay later. This article endeavors to provide you with an introduction to the different types of credit available and possibly help you make sense of some of the jargon you’ll come across.

A credit card is in a nutshell just one  type of credit line or loan, where the credit card bearer has an authorized amount of money to spend on that particular card, borrowed from a lender, such as a building society, bank or  credit union .

The minute people apply for a credit card, you apply to obtain money from the card issuer, usually a bank. The issuer will look at your credit history before  accepting your application– and if you have a low credit score you could be refused credit, or perhaps given a less attractive deal.