A credit card is a type of credit facility, provided by banks that allow customers to borrow funds within a pre-approved credit limit. It enables customers to make purchase transactions on goods and services. It is a thin rectangular piece of plastic or metal issued by a bank.
A Credit Card contains a 16-digit credit card number, cardholder’s name, expiration date, signature, CVC code, etc. The best part about a credit card is that it is not linked to a bank account. So, whenever a credit card is swiped, the amount is deducted from the credit card limit and not from your bank account. You can use it to pay for food and clothes, take care of medical expenses, travel expenses, and other lifestyle products and emergency services.
There are various types of credit cards such as Travel credit cards, Fuel Credit Cards, Business credit cards, Student credit cards to name a few.