What is a Credit Card?

Definition: A credit card allows its owner to withdraw money through the financial firm that has issed the card.

A credit card is a wallet-size plastic card containing electronic data that can be interpreted by a reading device for credit cards. The data include details about the owner of the credit card, the account number etc.

An owner of a credit card can use to the card as payment for goods or services without having to pay in cash or issue a check.

Credit card conditions

A credit card owner can borrow money from the issuer of the credit card and will not have to pay interest if the borrowed amount is repaid within 30 days.

However, nearly all credit card issuers apply interests if the credit card owner takes longer than 30 days to pay back the money.

Issuers of credit cards include banks, stores, service providers and other finanical institutions.