Credit Card’s

What is a Credit Card?

A credit card is card issued to a person which he can use for making payments.

It allows the cardholder to pay for goods and services based on promise to pay for them.

The credit borrowed by a person needs to be paid on monthly basis to the bank or any financial institution.

Various Types of Credit Cards

Credit Card

Standard Credit Card

Secured Credit Card

Limited Purpose Credit Card

Premium Credit Card

Charge Credit Card

Specialty Credit

Card

Prepaid Credit Card

Credit cards are of various types with different fees and interest rates.

When you are applying for a credit card, it is important to know about various types available which will help you make the best choice for selecting your credit card depending on your lifestyle and financial status.

Most commonly available credit cards are listed as follows.

How Credit Card Works?

Credit Card VS Debit Card

Credit Card Debit Card

Where money comes from?

Borrowing money from a bank or financial institution

Money that you have in your bank account

Can be used as Credit card only Debit card and Credit card

Line of credit Carries Line of Credit No Line of Credit

Monthly bills Yes No

Connected to No need to connect to any bank account

Savings account

Interest Need to pay interest on the amount borrowed

No

Things you should know

Make a payment every month.

Credit cards can also be good for clearing debts.

If you have poor credit ratings then you won’t get the best deals.

You get extra protection if you pay with a credit card.

Credit card can be used for making online transactions.

Benefits of Credit Card

Credit card provides cashless payment facility.

Credit card can be used online for making payments and also for shopping online.

Cash back facilities are offered on credit cards when you use for purchasing online or offline.

Reward points are offered on some credit cards which you can use later in form of gift cards.

Thank YouReference:

www.wikipedia.com

www.axisbank.com

www.thesun.co.uk

www.seotrafficsearch.com

www.investopedia.com

www.diffen.com