What are Credit Cards?
Credit cards are an approved and unsecured line of credit offered by financial institutions as an account that can be linked to other accounts you may have with you bank. Credit cards can be used as a payment option outside of face to face retail transactions with overseas companies or online purchases that require additional security. Credit card payments are often associated with companies that offer you encrypted security to avoid fraudulent transactions. A credit card will be presented in physical form in the same appearance to an ATM card.
Why use Credit Cards?
Credit cards can help you make purchases with approved credit from a financial services company. This can be very helpful if suppliers or retailers only accept an approved amount in advance like airlines or accommodation bookings. This is also a very good way to obtain a healthy credit rating if the balance and repayments are carefully monitored. A credit card also offers member benefits on purchases that accumulate into airline or shopper points that can be redeemed.