Credit Card

Any card, plate, or coupon book that may be used repeatedly to borrow money or buy goods and services on credit. A credit card is typically a payment card issued to a person for purchasing goods and services and obtaining cash against a line of credit established by the issuer. Credit cards can be of two types: those issued by merchants and vendors, such as department stores or oil companies, and general purpose credit cards issued by banks. These include Mastercard, Visa, Discover, and American Express. A credit card allows you to make partial payments for purchases, but charges interest on the amount owed. You can also pay your balance off in full to avoid interest payments. Banks and other card issuers set interest rates and fees.

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