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How Do Credit Cards Work
What Is a Credit Card?
Credit cards were first used by Americans in the 1920’s. In order for merchants to make more money
and to gain more customers they began to issue credit cards to their customers. I don’t know whether
fees or interest were applied to the credit cards at that time.
Different Credit Cards
1) Retail Credit Card
This card is referred as store credit cards or merchant credit cards and are usually offered by a certain stores usually chain stores. For example, Sears has a credit card and you can only use this card at sears. No other store will accept Sears Credit Card as payment for purchases.
2) Bank Cards
These credit cards which are sometime referred
as non-store credit cards or major credit cards are
usually offered by banking institutions and credit
unions. You can get either a Visa Card or Master
Card.
3) Other Credit Cards
There are other credit cards besides retail cards
and bank cards. Other credit cards includes
American Express, Dinner Club and Discover.
Credit Card Information
Another name for credit cards you might hear from time to time is charge cards.
Credit cards can sometimes be mistaken as
1) Prepaid Card
2) Debit Cards
3) ATM Cards
4) EBT Cards
5) Gift Cards
So don't make the mistake of thinking that you have a credit card if you have one of the above things.
I'm not going to discuss those because they don't have anything to do with credit.
However on the next page, I will discuss the different credit cards.
Click next page to learn about Retail Credit Cards
Hi, I'm Abbie.
Your financial
education tutor.
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