Credit Card And Credit Cards Essay

1573 Words Dec 12th, 2016 7 Pages
A credit card is a card issued by a financial company giving the holder an option to borrow funds, usually at point of sale. Interest usually begins one month after a purchase is made, and borrowing limits are pre-set according to the individual 's credit rating. (investopedia, 2016) Credit card usually charges interest rates and it is a best way for short term financing. A typical credit card is consist of issuing bank logo, EMV chip which is usually on smart card which makes card more safe and secure way of payment, Hologram, card number, card holder name and expiration date. Many credit card has a contactless chip which usually known as Tap. Which makes payments quickly and easily. Almost every store allows payments with credit card, because of this huge acceptance credit card is one of the easier forms of payment. Due to huge acceptance of credit card it has become the part of our daily life. There are four major credit card companies namely VISA, MasterCard, AMERICAN EXPRESS and Union pay. 56% of purchase transactions are done with VISA cards whereas, 26% of purchases from master card. While applying for credit card there are two factors, which must need to be consider. They are cost factor and features factor. Cost factor consist of Annual Percentage Rate (APR), Grace period, Annual fees, Transaction fees. Annual percentage rate means the cost of loan. In simple words it makes us understand that how much money it will cost to borrow certain…

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