In banking terminology, the term Credit Cards refers to a plastic card with a magnetic stripe typically issued by a bank or financial institution which allows a person to buy goods and services in advance of actually paying for them.A Credit Card is also known as a charge card.
For example, a Credit Card represents a convenient substitute for cash or checks for many people, and such cards provide one of the prime components enabling electronic, phone and Internet commerce. A Credit Card generally has a credit limit, which depends on the finances of the individual who was issued the card. In addition, a Credit Card typically charges interest on balances which can sometimes be quite high, even reaching up to 36% in some cases. Nevertheless, unbeknownst to the majority of Credit Card holders, many Credit Card companies issue their cards and allow purchases to accrue as unsecured loans. As a result, they have very little recourse in the event of a default and failure to pay on the part of the credit card holder.