Credit Cards

A credit card is usually a plastic card that acts as a conduit for purchasing or for other uses, instead of cash.  It gives the holder the right of its use when presenting it, if the proprietor accepts the credit card instead of cash for payment.  The proprietor then forwards the bill to the credit card issuing company.  The credit card issuing company sends the cash to the proprietor’s bank account set up to receive the funds.

The card holder is expected to use due diligence in the repayment of the money, usually as a monthly payment with added interest or for the whole amount that is due on a certain date.  The money borrowed is paramount to a loan or cash advance.  Usually, there is a limit put on the amount available.  A person has to make an application to obtain the credit card.  The application is granted, or not granted, based on his/her credit history and certain other criteria.

Making charges on the card is done by swiping it through an electronic device that reads the credit card numbers that is stored on the card.  The card number can be also given verbally, or typed on the computer and sent over the internet.  The credit card can be used wherever it is accepted up to the amount of the credit charge limit.  Some credit card companies allow cash withdrawal from the card account, while others only allow purchases.

Inside Credit Cards