plastic card authorizing the account holder to charge purchases against a preapproved credit line. Credit cards are issued by banks, thrift institutions, retailers, gasoline companies, and other credit grantors. Many card issuers charge an annual fee to cover account servicing costs.
Credit card purchases normally become payable after a grace period (up to 30 days) during which no finance charge is imposed. Afterward, the balance due may be paid in full or paid down in monthly installments of principal plus interest. Some issuers charge credit card interest from the purchase date if the cardholder's account has an outstanding balance. Credit card interest rates, annual fees, and repayment terms may vary considerably.
indication to sellers that the person who received the card from the issuer has a satisfactory credit rating and that if credit is extended, the issuer of the card will pay (or see to it that the seller receives payment) for the merchandise delivered. Most credit cards are made of plastic with raised letters to facilitate creation of machinereadable sales slips and a magnetically coded strip that is read electronically and verified by telephone.
plastic card issued by a bank, savings and loan, retail store, oil company, or other credit grantor giving consumers the right to charge purchases and pay for them later. Most credit cards offer a grace period of about 25 days, during which interest charges do not accrue. After that, consumers pay nondeductible consumer interest on the remaining balance until it is paid off. Some credit cards start charging interest from the day the purchase is registered. Most credit cards also permit consumers to obtain cash on their card in the form of a cash advance.
