An Introduction To Using Credit Cards
A credit card, also known as a charge card, is a card issued by a bank to consumers to allow the card holder to pay a retailer for products and services according to the balance of the card holder's accrued credit. Credit cards come in many different varieties, which are differentiated by the amount of money that can be charged to them (debit cards) or by the method in which they are purchased (credit cards). Some credit cards are assigned by banks to particular groups of people or organizations and some credit cards are granted through debit cards.
Most credit cards allow the user to make online purchases with just a few clicks of the mouse, and most companies issue their cards via mail or telephone in the same way as traditional credit cards. All major credit card companies also allow debit cards to be used instead of credit cards, and there are even some companies that issue prepaid Visa cards to consumers. The credit report that a consumer's credit card company will produce will contain information about all purchases made using the debit card, and this information will be available to the credit card company if it so chooses.
One advantage to using a credit card is that if a credit card holder makes a purchase when their bank has a zero percent interest rate, they will not have to pay any interest charges until their next billing period. This is often inconvenient for many people because they do not have access to funds before their next bill due date, and this can create problems with budgeting. Another advantage to credit cards is that they are a good way for employees who make frequent, but small purchases to build up a little credit history and their credit rating. There is one disadvantage to using a credit card: users must pay a fee every time they use their credit card. Fees vary by bank, and some charge a flat fee for each credit card that the user issues, while others only charge an annual fee for the rights to issue credit.