Credit Card

A credit card has been hailed by some as the greatest and most convenient invention in recent financial times. Whilst for others it has been the source of misery as they have been unable to resist having a credit limit and not seeing the money changing hands, making it less real until the bills and the subsequent problems arise if the bill cannot be paid.

A credit card is simple a plastic card that allows the holder to put payments against it rather than paying by cash, for instance when purchasing their food at the supermarket or any other purchase.

The cards are issued usually by banks but also by shops and other retailers. Store cards are often those that have the highest interest rates.

There is usually a time period in which a bill must be paid, and bills are usually issued monthly. Typically this may mean you don't actually need to pay for a purchase until around 45 - 60 days after you make it.

There is virtually always interest to pay on any element of the balance that is not paid off in full, and there is also usually a minimum payment that must be made to keep the credit card, though this is often a relatively small amount compared to what the full balance may be.

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