What is a credit card

A credit card is a type of money card that gives the holder a certain amount of money they can spend at a repayable and competitive interest rate. Credit cards are available worldwide and are typically offered to individuals and companies.

The scope of credit cards

A credit card gives the holder a certain amount of borrowed funds to spend freely as they wish provided they agree to a repayment plan and interest rate. Most credit cards will charge a competitive amount of interest and will require the credit card holder to make repayments on a monthly basis.

The process of obtaining a credit card is dependent on the issuing company’s requirements. Each credit card issuing company will impose their own prerequisites for applicants to satisfy before approving a credit card application and so it is advised that you seek the advice of a professional consultancy firm to guide you.

The most common reason for acquiring a credit card is to help individuals and companies gain greater flexibility with financing and payment of items and to also obtain short term financing where cash flow is unpredictable. Certain credit cards will offer no interest where the card holder repays the full amount of borrowed money each month the card it used and this is a huge attraction to many individuals and companies as it acts as a form of interest free loan.

Credit cards offer flexibility and convenience and allow the card holder to make purchases on products at times when they do not necessarily have the capital to do so. It is an obligation by all credit card holders that they do not exceed the amount of borrowed funds on the credit card. Credit cards can be used on an international basis and thus give the card holder great levels of freedom in how to plan their financial affairs.