Credit Cards

What is A Credit Card?
A credit card is a thin plastic card containing ID information (such as a signature or picture) which authorises the person named on it to charge purchases or services rendered to his/her account. The charges will be billed periodically and owed by the card holder.

It is the only form of payment card that offers a revolving line of credit in addition to its functions as a means of electronic payment. Some credit cards are basically charge cards because their balances have to be totally paid off, in full, each month. These are American Express and Diners Club.

Cards in the USA
Credit cards broadly fall into three categories.

  1. Standard cards. These have an interest rate of around 18 – 25% and a fee of around $25 per year.
  2. Low interest cards. They have rates of 11 – 13% but their fees are much higher – up to $70 per year.
  3. Cards with loyalty or rewards schemes. They have interest rates around 18 – 20% and fees of up to $100 or more per year.


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