Basics about Credit Card

Author: Austin Ames
by Austin Ames
Posted: Mar 27, 2012

Everyone has heard of credit cards, but not everyone knows what it is.

What is Credit card?

Credit card is a plastic card used instead of cash money by purchasing goods or services. The difference between a credit card from a regular bank card (debit card), is that the credit card does not draw money from your account when you buy a product. The company obtained the card by paying for the item you purchased. The company will then accumulate all the purchases you made during the course of a month, and send you an invoice.

Advantages of credit card

There are many benefits to using credit cards when you are out shopping. There are also many companies that recommend their employees to use credit cards at work.
Read more about the advantages of using credit cards.

Pitfalls in the use of credit cards

There are many benefits of using credit cards, but there are also some disadvantages if you do not fit you. If you do not pay your invoice by credit card Company, it can lead to substantial extra costs for you in the form of large fees.

Compare credit cards, and find the best credit card for you!

Different types of cards
Debit Cards:

The credit cards that most of the people have. The money deducted directly from your bank account, where there must be money.

Credit cards:

Not related to the bank account. The card used to purchase goods and services on credit. Most offer an interest free credit period from five to seven weeks. Monthly billing on all purchases made will be sent. You decide how much you will pay the invoice; over and above the minimum amount is usually from 250 to 400, or at least three-four percent of the used credit. Lending rate on the unpaid balance is very high.

Charge cards:

You pay the amount that is filled in, and have credit with full maturity. You\'ve really got an interest-free loan if you pay by the due date. If your payment is late, you must look with interest and late charges. The difference between the billing card and an interest credit cards with revolving credit do you see when you receive your invoice. If the amount you pay in full, you have a billing card. If the amount is not in the amount field, you have a credit card.

About the Author

Austin Ames has many years' experience in article writing and he has written many more in the past.

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Author: Austin Ames

Austin Ames

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United States

Member since: Apr 25, 2012
Total live articles: 120

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