What is a Credit Card?

Question: What is a Credit Card?

Answer:  In its most basic form, a credit card is an account issued by a financial institution or bank that allows a consumer to purchase goods or services on credit, then repay the balance over time. There are 4 major issuers of credit cards: American Express, Visa, Mastercard and Discover in the United States.

Depending on your credit-worthiness, banks and financial institutions set credit card limit based on your credit rating.  The better credit rating, the more credit they lend you.

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