What is a credit card?
What is a credit card? It is a payment instrument that you can use to purchase something instead of using cash. In theory, when you pay for something using a card, that amount is owed from the bank and need to be paid back. A credit card is designed to meet various income levels, from the entry-level (sometimes referred to as Gold), mid-range (Platinum), and high-income (e.g. Infinite, Premier, Signature). How does a credit card work? Think of it like a fast loan that you can pay back when your salary kicks in. To understand more on how it works, let’s take a look at the basic features such as follows: Annual fee A credit card has a fee that is charged annually to the card members for the benefits that come with it. Some of them don’t have an annual fee, whereas there are also cards with an annual fee waiver condition. To get your credit card annual fee waived is simply by making one transaction per month for 12 consecutive months, or meet the card's minimum spending required in ...