Credit Card

What Is a Credit Card?

A standard credit card is a revolving line of credit that allows the cardholder to make purchases up to a predetermined limit. The issuer replenishes the credit line each time the cardholder pays off some or all of the balance.

How Credit Cards Offer Superior Security Over Debit Cards

It’s important to recognize that not all plastic money is created equal, and using a debit card for shopping may not always be the wisest choice. Here are five reasons why relying solely on a debit card for your shopping needs may have its drawback: Varying levels of fraud protection. Limited potential for building credit. Insufficient purchase protection. Cash flow constraints. Limited recourse for disputes.

Making only the minimum payment

When you only make the minimum payment on your card, you’ll end up carrying some of your balance forward, which means, yep, those expensive interest charges we just discussed. You should be careful about this even if your card has 0% APR for a period of time. In this case, the card issuer will also give you a minimum payment, but don’t be fooled! Instead, run the numbers yourself.