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 are also beginning to require a signature for contactless purchases of more than $25.
Credit cards are especially dangerous because of the business practices of credit-card companies.
As law enforcement became more aware of the identity of the known credit card thieves, new perpetrators, or "fresh faces," have begun to actually pass the cards in the casinos.
Over the past several years, pricing practices in the credit card market have changed significantly.
If you don't have any luck there, try a secured credit card.
In 1987, the alumni association and Peoples Bank & Trust (Peoples Bank) entered into an agreement under which the bank issued affinity credit cards featuring the University.
In recent congressional testimony, he skewered "the serious institutional pathology of credit card issuers who encourage consumers to pile up debt.
Costs of acquiring individual credit card accounts from a third-party originator (see Issue no.
In February, South Korean banks estimated that nearly 8 percent of credit card bills in the country were outstanding for a month or more, roughly double the percentage in the United States, and last year South Korea suffered its largest number of personal bankruptcies ever.
According to The Motley Fool's You Have More Than You Think by David and Tom Gardner (Simon & Schuster, $13), "In almost every case, with a simple phone call you can negotiate your interest rate down, demanding that your credit card company set its rate at 12% or lose your business.
Law enforcement authorities continually confront new and complex schemes involving credit card frauds committed against financial institutions and bank card companies.
Recently, revolving credit - primarily credit card debt - has been, by far, the fastest growing component of consumer debt, averaging annual increases of 20 percent over the past two years.