What Is A Credit Card
What is a credit card? It is so common today. You can’t live without it. According to Wikipedia, a credit card system is a type of retail transaction settlement and credit system, named after the small plastic card issued to users of the system. A credit card is different from a debit card in that the credit card issuer lends the consumer money rather than having the money removed from an account. It is also different from a charge card (though this name is sometimes used by the public to describe credit cards) in that charge cards require the balance be paid in full each month. In contrast, a credit card allows the consumer to ‘revolve’ their balance, at the cost of having interest charged. Most credit cards are the same shape and size, as specified by the ISO 7810 standard.
Do you have a credit card? I believe most of your friends do. Whether you are in high school, college or employed, this plastic card may change your life for better or for worse.
Sometimes your banks don’t talk about certain issues that they consider as disturbing facts. For example, it has recently been suggested that credit card companies include a warning on their statements discouraging customers from paying only the minimum, however few companies have so far acted upon this. Companies which do include a warning tend not to inform customers how long full repayment will take, i.e. they discourage users from making just minimum payments but do not explain why. As a result, less financially savvy customers may ignore these empty warnings.
I hope this blog can help you make the right decision in selecting a credit card to match your needs. Don’t mix up your needs with your lifestyle or else this may lead you into huge credit card debt and financial ruin.
Tags:credit cards
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