A credit card is also called a credit card and is a popular way of borrowing money in US. Credit card offer as the name suggests the possibility to buy on credit. A short-term loan is taken out, as it were, with the credit company that issued the card. When applying for a credit card, a credit limit is agreed and the cardholder has the opportunity to make purchases up to the amount of the limit. Of course, interest is charged monthly on the money that is borrowed.
|Review||$ 1,250 to $ 3,000|
|Review||$ 500 to $ 10,001|
Using a credit card? How does it work?
Credit cards all work the same in principle and besides banks there are countless other companies that offer the opportunity to apply for a credit card. There are some well-known cards that can be used around the world such as Mastercard and Visa . These cards are useful because they can be used for everything, but they can also be used for online orders, for example. The credit card is linked to an account, where the borrowed money is debited after a certain period.
The amount of the credit opening varies and depends, among other things, on the income of the cardholder. You can always borrow until the credit ceiling is reached. The borrowed money can be repaid at once in a month or can be repaid spread over several months. The credit card has an end date, but the agreement is for an indefinite period. After the expiry date, a new credit card can be obtained under the same conditions.
The popularity of the credit card is partly due to the fact that it can be used again and again. It is therefore a very practical means of payment , but one should be aware that borrowing money costs money in this case too. The annual cost percentage is therefore higher in relation to other loan forms. Incidentally, there are also special store credit cards that can only be used at the relevant store.
Prepaid credit card
There is no loan with a prepaid credit card. The card can be used to make payments up to and including the value of the balance on the prepaid credit card. There are also such credit cards that are linked to a bank account. With an expense, the money will then be debited directly from the bank account.
Credit cards are generally accepted internationally , so that payments can also be made outside of US. Again, Visa and Mastercard are accepted almost everywhere. The card providers can also charge other costs in addition to the interest, so it is advisable to make a comparison before applying for a card. In this way, the credit company can be selected that offers the most favorable conditions.
Applying for a credit card can usually be done online , after which the financial situation of the applicant will be examined. There must be sufficient income to be able to use a credit card.