Today technology is rapidly getting advance, even as the day brakes every day, many people engage on financial banking yet some still not know what is a credit card?, the functions, it benefit in the banking system; and it other features of to the users. 
However, here in our page, we have what it takes to satisfy you with a reliable information on what a credit is all about to you as a banker, how you can use it and it productive measure to the users
What Is A Credit Card
A credit card is a payment card offered to users to which certainly make it easier to the cardholder to make payment to a merchant for goods and services based on the cardholder’s payable debt.
Moreover, the union that is responsible for offering the credit card, however, makes provisions that is revolving account and grants a line of credit to the cardholder. this can now create rooms for the cardholder to borrow money for payment to a merchant or as a cash advance. before now there are two credit card groups: consumer credit cards and business credit cards. Most cards are plastic, but some are metal cards (stainless steel,
The two credit card groups are as follows;
- Consumer Credit Cards
- Business Credit Cards
Consumer Credit Cards
The term consumer credit is refer to the personal debt taken on to purchase goods and services.However, a credit card is one form of consumer credit , though any type of personal loan could be label consumer credit.
Moreover, this term is always use to describe unsecured debt, that is taken on to buy everyday goods and services.
2. Business Credit Card
This card is not intended for an individuals personals use, rather a card that is designed for business entities only. However, this card business card is a card made available for any sizes of business and at the same time can assist you build a credit profile, that is to advance future borrowing terms.
The Basic Types Of Credit Card
Credit card is basically type into four (4), here below are the four major types of credit card.
Major credit cards are any cards that belong to one of the big four credit card network;
- Visa,
- MasterCard,
- American Express
- Discover
So a Visa, MasterCard, American Express or Discover card from one of those companies, like Chase or Capital One, might fit the description of a major credit card best.
visa Credit Card
Visa Credit cards give you the convenience and security to make purchases, pay bills, or get cash from over 2 million ATM’s worldwide. Whenever you use a credit card, you are actually borrowing money that you will pay back over time or in full.
MasterCard
Inc. is an American multinational financial services corporation headquartered in the MasterCard International Global Headquarters in Purchase, New York. The Global Operations Headquarters is located in Fallopian, Missouri, a municipality of St. Charles County, Missouri
The American Express
The American Express Company is a multinational corporation specialized in payment card services headquartered at 200 Vessel Street in the Battery Park City neighborhood of Lower Manhattan in New York City. The company was founded in 1850 and is one of the 30 components of the Dow Jones Industrial Ave rag
Discover credit card
Discover is a credit card brand issued primarily in the United States. It was introduced by Sears in 1985. When launched, Discover did not charge an annual fee and offered a higher-than-normal credit limit, features that were disruptive to the existing credit card industry
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Functions Of Credit Card
Credit cards offer you a line of credit that can be used to make purchases, balance transfers and/or cash advances and requiring that you pay back the loan amount in the future. When using a credit card, you will need to make at least the minimum payment every month by the due date on the balance.
The Importance Of Credit Card To The Society
The biggest advantage of a credit card is its easy access to credit. Credit cards function on a deferred payment basis, which means you get to use your card now and pay for your purchases later. The money used does not go out of your account, thus not denting your bank balance every time you swipe
The Pros And Cons Of Credit Cards
- Pro: They’re a Great Way to Build Credit.
- Con: High Cost of Borrowing.
- Pro: They’re More Secure Than Cash.
- Con: It’s Easy to Dig Yourself into a Hole.
- Pro: Rewards Points.
- Con: Applying for Too Many Credit Cards Can Damage Your Credit.
How to Know if credit card is good or bad
Credit card is neither good nor bad but any user have to handle them responsibly because they could help or hurt your finances as a user or subscriber of the network( credit card). Although when you can use credit card responsibly; it can at the same time offer you comfortable payment method, that can build credit and earn rewards for users.
The Different Between credit card and debit card
Debit cards allow you to spend money by drawing on funds, you have deposited at the bank. while,
Credit cards allows you to borrow money from the card issuer; up to a certain limit in order to purchase items or withdraw cash.
Disadvantages of using credit cards
- Established credit-worthiness needed before getting a credit card.
- Encouraging impulsive and unnecessary “wanted” purchases.
- High-interest rates if not paid in full by the due date.
- Annual fees for some credit cards – can become expensive over the years.
- Fee charged for late payments.
How To Open A Credit Card Account
To open your account, you’ll first need to put down a cash deposit. Your credit limit is typically equal to your deposit. Minimum deposit requirements range from $200 to $500, depending on the card. Most secured cards allow you to deposit more to get a higher credit line.
To Know If You are eligible credit card
For you to qualify for credit card purchase, you need to be at least 18. Income: You’ll need to report sufficient income to show you can repay the money a card issuer lends you. Applicants 18 to 21 are required to show proof of income (such as a job) or have a cosigner according to the CARD Act of
Conclusion
Credit cards provide a convenience to consumers, acting as both a method of payment and a flexible credit instrument. We may expect then that most consumers would pay a modest net monetary cost to access this convenience.