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Credit Cards
A credit card is a system of payment named after the small plastic
card issued to users of the system. A credit card is different from
a debit card in that it does not remove money from the user's
account after every transaction. In the case of credit cards, the
issuer lends money to the consumer (or the user) to be paid to the
merchant.
It is also different from a charge card (though this name is
sometimes used by the public to describe credit cards), which
requires the balance to be paid in full each month. In contrast, a
credit card allows the consumer to 'revolve' their balance, at the
cost of having interest charged.
Credit card issuers usually waive interest charges if the balance is
paid in full each month, but typically will charge full interest on
the entire outstanding balance from the date of each purchase if the
total balance is not paid. |
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Supplied
courtesy of 'www.istock.com' |
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Supplied
courtesy of 'www.istock.com' |
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