Credit Card
A credit card is a payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder’s promise to pay for them. The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance. A credit card is different from a charge card, which requires the balance to be paid in full each month.
History of Credit Cards
The first credit card was introduced in the United States in 1950 by the Diners Club. It was a charge card that allowed customers to charge purchases to their account and pay for them at the end of the month. The first credit card to offer revolving credit was the BankAmericard, which was introduced in 1958. This card allowed customers to borrow money from the bank and pay it back over time with interest.
Since then, credit cards have become a popular form of payment, with more than 1 billion cards in circulation in the United States alone. Credit cards are accepted at millions of locations around the world, making them a convenient and secure way to make purchases.
Comparison Table
| Credit Card | Charge Card |
|---|---|
| Revolving Credit | Balance must be paid in full each month |
| Interest charged on balance | No interest charged |
| Minimum payment due each month | Full balance due each month |
Summary
Credit cards are a convenient and secure way to make purchases. They allow users to borrow money from the bank and pay it back over time with interest. Credit cards are accepted at millions of locations around the world, making them a popular form of payment. For more information about credit cards, visit websites such as CreditCards.com, NerdWallet.com, and Bankrate.com.
See Also
- Debit Card
- Charge Card
- Prepaid Card
- Secured Credit Card
- Rewards Credit Card
- Balance Transfer Credit Card
- Low Interest Credit Card
- Business Credit Card
- Credit Card Debt
- Credit Card Fraud
