Credit Cards

Credit Cards

A credit card system is a type of retail transaction settlement and credit system named after the small plastic card issued to all system users. A credit card is different from a debit card because the credit card issuer lends the money to a consumer, rather than having the money removed from an account. It is also different from a charge card (though this name is often used to describe credit cards by the public) because the charge cards do not extend user credit — charges must be paid each month in full. Most credit cards are the same shape and size as specified by the ISO 7810 standard.

Credit cards types

• Good Credit Cards: for people with good credit history.
• Bad Credit Cards: for people trying to build or rebuild their credit.
• Smart Credit Cards: embedded with smart chips for more security.
• Reward Credit Cards: for travel miles, cash back bonuses, discounts, and other benefits.
• Student Credit Cards: for students aiming to set up credit for the first time.
• Business Credit Cards: for large and small business owners.

Secured Credit Cards

A secured credit card is a special type of a credit card where you must first put down a deposit between 100% and 150% of the total amount of credit you desire. Thus, if the holder puts down $1500, he or she will be given credit in the range of $1000-$1500. This deposit will be held in a special savings account. The owner of such secured credit card is still expected to make regular payment as he or she would with a regular credit card, but should the card issuer fail in making a payment; he or she could deduct payments on the card out of the deposit. Therefore, secured credit cards are an advantage to anyone with poor or no credit history. Secured credit cards are often offered to people as a means of rebuilding one’s credit. Secured credit cards are available with both Visa and MasterCard logos on them.