Credit Cards USA

The US introduced credit cards in 1958 and till date they have shown great fascination in using credit cards. The credit card these days is becoming more and more niche throughout the world while shopping. Despite the number of frauds taking place in credit cards, the need for earning more credit through credit cards is not going to stop as more often than not people fall short of their cash and need credit.

What are credit cards?

The credit cards are cards made up of plastic; contain a chip through which one can buy goods and services on credit. Different credit card companies issue different credit cards based on specific demands of the users. The credit cards are unsecured loans and may or may not be granted on the credit earned by the credit card holder.

How does credit card work?

The credit cards transactions involve mainly 4 parties – issuers, bank of the issuers, user and bank of the user. The issuer issues credit cards to the user based on the credit earned by him. The user uses this card for shopping either online or through stores or shops showing his credit card to the vendor. The vendors swap the credit cards in their machines to know the validity of the credit card and deliver the goods or services to the user. The user at the end of the month receives a statement from the issuer showing the complete purchase made by him which is required to be paid in certain time limit.

What are the types of the credit cards?

The credit cards are designed according to the need of the customers. There are plenty of credit cards like personal credit cards, small business credit cards, corporate credit cards, airline credit cards, cash back credit cards, student credit cards, balance transfer credit cards etc. One can have more than one card to avail different services of the credit cards.

What are the benefits of the credit cards?

  • - These days' credit cards represent wealth and good standing for the user.
  • - With credit cards, the online payment is more easy, secure and fast.
  • - Few credit cards comes with zero interest on purchases or balance transfers and can work like interest free loan
  • - Foreign payment is even more easier e.g. enrolment to a foreign college
  • - With the balance transfer services, the person can even pay back the outstanding debts.