How is the credit card works?

How Credit Cards Work
A credit card is issued to an individual after his application has been accepted by the credit card issuer. A credit card allows consumers to purchase products or services without cash and to pay for them at a later date. The cardholder can use the card for buying any commodity or availing any service on credit subject to a specific credit limit. To qualify for this type of credit, the consumer must open an account with a bank or company, which sponsors a card. They then receive a line of credit with a specified dollar amount. After anything is bought or any service is availed, money is lent to the customer or the credit card holder for the purpose of paying the merchant. In other words, money is paid to the merchant by the credit card issuer on behalf of the credit card holder. They can use the card to make purchases from participating merchants until they reach this credit limit. Following this, the credit cardholder enters into an agreement to repay the credit card issuer. If the payment is done within a grace period of 20 or 30 days, no interest is charged by the credit card issuer. Every month the sponsor provides a bill, which tallies the card activity during the previous 30 days. Depending on the terms of the card, the customer may pay interest charges on the amount that they do not pay for on a monthly basis. If the payment is done after that, interest is payable by the credit card holder. Also, credit cards may be sponsored by large retailers (such as major clothing or department stores) or by banks or corporations (like American Express or VISA).

BROWSE CARDS BY ISSUER
	Advanta Bank
	American Express
	Bank of America
	BANKFIRST
	Chase Manhattan Bank
	CitiBank
	Discover Bank
	First Bank of Delaware
	First USA
	HSBC Bank Nevada, N.A.
	MetaBank
	New Millennium Bank
	Pulaski Bank
	U.S. Bank

Most Popular Credit Card
PERSONAL CARDS
Blue from American Express®

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