A credit card allows you to buy things even though you might not have
money to pay for it right away. The company that gave you card lets you spend up to an agreed sum and then makes additional money available to you as you pay off what you've spent. You must pay at least a minimum amount by due date, generally once every month. You will pay a finance charge or interest on any amount you do not pay by due date. Today our entire financial system relies on credit. Credit cards can help to make your life that little bit easier- you can use it to pay for goods or services, either over phone, online or over counter.
Credit cards can enable you to have that little extra spending power when and where you need it. In addition to paying for purchases you can also use your credit cards in order to withdraw cash from a cash machine, not only in this country but all over world.
It is increasingly difficult to operate in modern economy without a credit card. Credit cards allow people to manage emergencies, to shop conveniently in High Street, by telephone or over internet and are useful when travelling abroad.
With each credit card you will have a limit to amount of money that you can spend on it. This is known as a ‘credit limit'. You can withdraw money and pay for goods and services as much as you want up to your credit limit, effectively borrowing capital from your credit card provider.
Every month you will receive a credit card statement that will detail both your balance (the amount of money you have either withdrawn or spent) and any interest that has accrued upon it. You can then either pay off full amount or make minimum payment.
