Credit Card

What is a credit card

A credit card is an instrument used by individuals or businesses to borrow money from banks. It is also known as a plastic card. Credit cards are widely accepted in most places around the world. They allow people to buy goods and services without having to pay for them all at once.

Oxford Languages

a small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit.

“I gave my credit-card number”


A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder’s accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the other agreed charges). The card issuer (usually a bank or credit union) creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance. There are two credit card groups: consumer credit cards and business credit cards. Most cards are plastic, but some are metal cards (stainless steel, gold, palladium, titanium), and a few gemstone-encrusted metal cards.

Types of Credit Cards Available

Secured Card

Secured cards require some type of security deposit before being issued. This means that you’ll need to put down some money up front before using the card. This protects the bank against fraud by requiring you to deposit funds before making purchases.

Unsecured Card

An unsecured credit card is one where there is no security deposit or collateral required by the bank. If you decide to use an unsecured card, make sure you understand how much interest you will pay and what fees apply. You should also check with your bank to see if there are additional charges for using an unsecured card.

Prepaid cards

Prepaid cards are often referred to as gift cards. These cards are preloaded with funds and can be used to purchase items online or in stores.