Credit Card

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DEFINITION of 'Credit Card'

A card issued by a financial company giving the holder an option to borrow funds, usually at point of sale. Credit cards charge interest and are primarily used for short-term financing. Interest usually begins one month after a purchase is made and borrowing limits are pre-set according to the individual's credit rating.

BREAKING DOWN 'Credit Card'

Credit cards have higher interest rates (around 19% per year) than most consumer loans or lines of credit. Almost every store allows for payment of goods and services through credit cards. Because of their wide spread acceptance, credit cards are one of the most popular forms of payment for consumer goods and services in the U.S.

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RELATED FAQS
  1. How can you pay your Walmart credit card?

    Holders of Walmart credit cards can make payments on their balances due by mail, online or at Walmart and Sam's Club stores. ... Read Full Answer >>
  2. Can you use your Walmart credit card at Sam's Club?

    Consumers can use their Walmart credit cards to shop at Sam's Club. However, they cannot use their Walmart credit cards when ... Read Full Answer >>
  3. Can the Best Buy credit card be used anywhere?

    The Best Buy credit card can only be used in Best Buy stores and when making purchases online through the Best Buy website. ... Read Full Answer >>
  4. Do Pharmacies Take CareCredit?

    CareCredit’s health, wellness and personal care credit card is now accepted for prescriptions and general merchandise purchases ... Read Full Answer >>
  5. Which bank actually issues the Best Buy credit card?

    The Best Buy credit card is issued by Citibank. The card is designed to encourage spending for products offered by Best Buy ... Read Full Answer >>
  6. Can you pay off your Best Buy credit card in store?

    All Best Buy credit cards can be paid off in the store using cash or a check. These credit cards have great benefits for ... Read Full Answer >>
  7. Who accepts CareCredit?

    CareCredit is a credit card that is accepted by over 175,000 health care providers in the United States for various medical ... Read Full Answer >>
  8. Why is reconciliation important in accounting?

    Reconciliation is an accounting process that proves and documents that account balances are in agreement. It's a fundamental ... Read Full Answer >>
  9. Can private investors benefit from collateralized debt obligations (CDO)?

    Although individuals involved in the private banking industry may buy into collateralized debt obligations, or CDOs, they ... Read Full Answer >>
  10. How can I invest in credit card companies?

    In a consumer economy fueled by credit, a natural place to look for a lucrative investment opportunity is with credit card ... Read Full Answer >>
  11. What other sectors are most similar to financial services?

    Typically, the financial services sector allows countries to export goods and turn agricultural and manufacturing products ... Read Full Answer >>
  12. How often is my credit score updated?

    A consumer's credit score usually updates at least once every 30 to 45 days, and in some cases almost daily, depending on ... Read Full Answer >>
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    Gift cards are a popular way for a gift giver to ensure the intended receiver gets the desired gift. One no longer has to ... Read Full Answer >>
  14. How is my credit score calculated?

    The credit score, commonly referred to as a FICO score, is a proprietary tool created by the Fair Isaac Corporation. This ... Read Full Answer >>
  15. Are credit cards and debit cards considered debt instruments?

    Consumer debt instruments allow people to borrow money at specific interest rates. In recent years, the credit industry has ... Read Full Answer >>
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