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Credit cards are a way to pay for goods and services and conveniently borrow money from the bank.

Definition

Credit Cards

The credit card is a payment instrument that must be manages in a financial institution or a company issuing credit cards and will be granting to the applicant if they meet the requirements. The entity will provide an amount of credit for which you can operate and will relate to the applicant’s income. Unlike the debit card, the funds to use must not be previously deposits, but as they are used to withdraw cash or make payments, a debt will automatically will be generates. However, a credit card is a convenient way to borrow money to pay for things.

Generally, this debt must be paid monthly, for which the entity sends a summary with all the transactions carry out, the expiration date, and the amount owes. However, the advantages to having a credit card – most offer benefits such as point accumulation, discounts at specific stores, travel insurance, purchase protection, and a fraud protection guarantee. However, a credit card also allows you to withdraw cash (a cash advance or cash withdrawal) from an ATM.

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