Imagine you're out shopping and, just before you leave, you see something you would really like to buy, but which costs a bit more than you can afford at the moment. This is the exact reason credit cards exist: so that you can buy something more costly and paying for it later, possibly even in monthly installments.
The credit card is a little plastic card you can use to pay with at stores that claim they accept a brand or another. There are even house cards and travel and entertainment cards, which you mostly only use in some venues. Some people have too many of them, some can't help shopping with them, but, at the end of the day, what exactly is a credit card?
A credit card is more than just the piece of plastic in your wallet; it is a Credit0 tool. It will have an open account attached to it, from where you can borrow money when you need it and then pay it back later. This is basically a revolving account and different lenders offer various rates and payment plans.
The three main credit card issuers are Visa, MasterCard and American Express. You will most likely see their logo in shops and on web sites that accept this form of payment. It has become a very versatile and useful form of paying for your purchases. Almost everyone has one or even several.
Before you apply for this type of card, you should remember to consider the rates and payment plans most suitable to your needs. Some cards offer fixed rates, others offer no annual fees and some even frequent-flier miles. Also, your best bet in not getting a very high unpaid balance is paying back on time and watching what and how much you spend and if you can afford to pay it back later, even in installments. Other than that, have fun shopping!
Imagine you're out shopping and, just before you leave, you see something you would really like to buy, but which costs a bit more than you can afford at the moment. This is the exact reason credit cards exist: so that you can buy something more costly and paying for it later, possibly even in monthly installments.
The credit card is a little plastic card you can use to pay with at stores that claim they accept a brand or another. There are even house cards and travel and entertainment cards, which you mostly only use in some venues. Some people have too many of them, some can't help shopping with them, but, at the end of the day, what exactly is a credit card?
A credit card is more than just the piece of plastic in your wallet; it is a Credit0 tool. It will have an open account attached to it, from where you can borrow money when you need it and then pay it back later. This is basically a revolving account and different lenders offer various rates and payment plans.
The three main credit card issuers are Visa, MasterCard and American Express. You will most likely see their logo in shops and on web sites that accept this form of payment. It has become a very versatile and useful form of paying for your purchases. Almost everyone has one or even several.
Before you apply for this type of card, you should remember to consider the rates and payment plans most suitable to your needs. Some cards offer fixed rates, others offer no annual fees and some even frequent-flier miles. Also, your best bet in not getting a very high unpaid balance is paying back on time and watching what and how much you spend and if you can afford to pay it back later, even in installments. Other than that, have fun shopping!
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