CREDIT

CARD
0577 4788 4210 0001
01.
WHAT IS THE
CREDIT CARD?
 Credit cards are plastic or metal
cards used to pay for items or
services using credit.

A credit card is a thin rectangular piece of plastic or

metal issued by a bank or financial services company
that allows cardholders to borrow funds to pay for
goods and services with merchants that accept cards
for payment.
CHARACTERISTICS
● Credit cards charge interest on
the money spent.
● Credit cards may be issued by
stores, banks, or other financial
institutions and often offer perks
like cash back, discounts, or
reward miles.
● Secured credit cards and debit
cards offer options for those with
little or bad credit.
 Credit cards typically charge a higher annual
percentage rate (APR) vs. other forms of consumer
loans. Interest charges on any unpaid balances
charged to the card are typically imposed
approximately one month after a purchase is made
(except in cases where there is a 0% APR
introductory offer in place for an initial period of
time after account opening) unless previous unpaid
balances had been carried forward from a previous
month—in which case there is no grace period
granted for new charges.
Types of Credit
Cards
 VISA
Visa cards are payment cards
that use the Visa network.

MASTERCARD
Mastercard’s primary source of revenue comes
from the fees that it charges issuers based on
CREDIT CARD each card’s gross dollar volume.

DISCOVER
When launched, Discover did not charge an
annual fee and offered a higher-than-normal
credit limit.

AMERICAN EXPRESS
While banks process most of the transactions,
not every part of the process is controlled by the
banks.
If you don’t have any credit, merchants
or banks are less likely to extend credit
to you since you’re an unproven
borrower.

Another way to start building credit is to

become an authorized user on an
established credit account, such as a
parent or spouse.
 What is a credit card
annual fee?
The annual fee on a credit card is the
fee charged by the card issuer to
extend the credit card to you. Some
cards don’t charge an annual fee, but
others—most often cards that offer
rewards or incentives like cash back
—can charge annual fees ranging
from $50 to $700.
Thank you for paying
attention
E-108
B. Narangerel