CREDIT CARD Meaning and
Definition
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A credit card is a type of payment card that allows individuals to borrow money from a financial institution, referred to as the card issuer, to make purchases or obtain cash advances on a predetermined line of credit. It is a convenient and widely accepted method of payment in various establishments worldwide.
Credit cards typically have a physical card, often made of plastic, with a unique number and holder's name embedded on it. The cardholder can use this card to initiate transactions, either by physically swiping the card through a magnetic card reader or by entering the card details online. The credit card network, such as Visa, Mastercard, or American Express, processes these transactions and facilitates the transfer of funds from the card issuer to the merchant.
Unlike debit cards that withdraw funds directly from the cardholder's bank account, credit cards allow individuals to borrow money up to a pre-approved credit limit. The cardholder is billed periodically, usually monthly, for the purchases and cash advances made using the credit card. If the outstanding balance is not paid in full, the cardholder incurs interest charges on the remaining amount. Some credit cards may also offer rewards, such as cash back, points, or airline miles, as an incentive for card usage.
Credit cards provide a convenient means of payment, enhance purchasing power, and can be beneficial for building a credit history. However, they also carry the potential risk of accumulating debt if not managed responsibly.
Common Misspellings for CREDIT CARD
- xredit card
- vredit card
- fredit card
- dredit card
- ceedit card
- cdedit card
- cfedit card
- ctedit card
- c5edit card
- c4edit card
- crwdit card
- crsdit card
- crddit card
- crrdit card
- cr4dit card
- cr3dit card
- cresit card
- crexit card
- crecit card
Etymology of CREDIT CARD
The word "credit card" has an interesting etymology. The term "credit" comes from the Latin word "creditum", which means "loan" or "trust". This Latin word is derived from the verb "credere", which means "to believe" or "to trust".
The word "card" in this context refers to a small rectangular piece of plastic or other material on which information is embedded or printed. It is derived from the Old French word "carte", meaning "playing card or card". This word, in turn, comes from the Latin word "charta", which means "paper" or "papyrus".
The combination of these two words, "credit" and "card", came together to form the term "credit card". It refers to a payment card that allows its holder to make purchases on credit or borrow funds to be repaid later, usually with interest.
Similar spelling words for CREDIT CARD
- credit side,
- credit line,
- credit order,
- credit system,
- credited,
- credit union,
- garrote garrotted,
- credit hour,
- credit bureau,
- credit entry,
- carrot crudite,
- credit-card misuse,
- critiqued,
- credit-card holder,
- Crediting,
- creditworthy,
- creditor,
- credit crunch.
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