A credit card is a very convenient credit product – regular repayments will avoid accruing interest, and the deadline by which the credit limit used should be settled is longer than a month. How do credit cards work?

What is a credit card

A credit card is nothing but a credit card credit card limit that every bank customer knows. In form, it does not differ from every card it receives to service the funds accumulated on a regular bank account. Often, it is not that easy to distinguish it from a regular debit card. During purchases, however, the credit card collects funds not from a personal account, but from a credit account.

credit cards

This involves additional options, but also some obligations that you can’t forget. Otherwise, plastic, which was supposed to give us access to free additional funds, may turn out to be quite a burden on the household budget. At the same time, however, wisely managed credit cards are a great way to raise money without unnecessary formalities and burdens.

What’s the difference between a credit card and a debit card

You may have access to four types of bank cards:

  • Debit Cards
  • Credit cards
  • Prepaid cards – also called prepaid cards
  • Charge cards – also known as charge cards

The simplest instrument is a debit card. It is issued as a supplement to your account and allows you to pay cashlessly for purchases and withdraw money from your account using an ATM. When using a debit card, we always pay with the money we already have on the account (the exception is situations in which we have an active debit) Thanks to this card we have easy access to funds on the account, which, combined with access via the Internet, allows you to completely eliminate the need bank visits. But if we do not have money on the account, the card will not be of much use to us – or attempts to charge it (i.e. make a transaction) will most likely be rejected (when it happens otherwise I will describe it in a security article).

Credit cards work differently. They are not associated with our personal accounts in any way. They are an independent banking product, which de facto is a loan granted to us with a specific upper limit. We pay the bank’s money by paying by credit card. For such a card, the bank opens a special account associated with it with a maximum balance equal to our limit.

Using a credit card step by step

Credit card will undoubtedly be able to pay anyone who has used any type of card payment: be it debit or prepaid. With her help, we can easily pay in a stationary store using non-cash transactions with the PIN code or without it within the accepted limit. We will also be able to pay for online purchases. However, the obligations of its owner do not end there. While in the case of plastic “connected” to a bank account the sum will be taken from the account, credit cards benefit from the limit granted, which in no way is connected with our savings. Therefore, the loan will have to be repaid, and the final cost of the loan depends on how we do it.


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