credit card

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Credit card

Any card, plate or coupon book that may be used repeatedly to borrow money or buy goods and services on credit.

Credit Card

A card entitling the owner to use funds from the issuing company up to a certain limit. The holder of a credit card may use it to buy a good or service. When one does this, the issuing company effectively gives the card holder a loan for the amount of the good or service, which the holder is expected to repay. Most credit cards have variable and relatively high interest rates on these loans. Credit cards also have a limit, which may be raised or lowered depending on the creditworthiness of the card holder. Most analysts recommend treating a credit card as a short-term loan, as allowing the interest to compound for too long may result in dire financial straits.

credit card

a card issued by a financial institution (mainly COMMERCIAL BANKS and BUILDING SOCIETIES), which can be used generally to purchase goods and services on CREDIT up to an agreed limit, or, for example, by a retail group for in-house purchases only. Credit cards are a convenient way of making purchases and many issuers provide the facility interest-free, provided clients pay off the outstanding balance in full when due. In the UK, retailers pay the credit card companies, on average, around 2% commission to participate in the credit card schemes and may pass on this charge to customers who pay for products by credit card rather than cash.

credit card

a plastic card or token used to finance the purchase of products by gaining point-of-sale CREDIT. Credit cards are issued by commercial banks, hotel chains and larger retailers. See EFTPOS.
References in periodicals archive ?
Credit-card companies use this information to make all sorts of decisions about consumers, including whom to target with which offers.
To listen to credit-card companies argue that high levels of consumer debt are not their fault is to hear, ringing in your ears, the complaints of the auto industry 40 years ago It's a matter of "personal responsibility" the credit companies say.
Bean, but cash-swapped parents worry about whether they'll even make a dent in next month's credit-card bills.
About one-third of clients seen at the Consumer Credit Counseling Service of Los Angeles have credit-card debt so large they won't be able to pay it off in their lifetimes - not if they are paying up to 30 percent interest on their cards, counting penalty fees.
The arrangement is attractive to creditors, too, because it allows them to get some money back, whereas if the client just stopped paying or declared bankruptcy, the debt is ``charged off'' and represents a total loss to the credit-card company.
Anne Viricel, a veteran of Springboard's debt-management program in Alta Loma, recalls one of the money-saving strategies that helped her eventually pay off $28,000 in credit-card debt: Stockpiling packets of bleu cheese dressing from Carl's Jr.
In 1977, the top 50 banks had half of all credit-card accounts; today the top 10 control over three-quarters, helping explain why interest costs have climbed to such heights.