Credit Cards

Credit cards allow a person or business to pay a supplier for an item or service but not have to repay that amount to the credit card provider until a later date, in effect taking out credit with the provider. Just like a loan, the lender will charge interest on the amount, but this usually only applies if the credit card holder does not pay off the balance in full by the due date, which is usually one month.

To apply for a credit card, applications will normally be made through a bank or building society who will then provide a credit card from one of the leading credit card companies such as Visa, MasterCard and American Express.

Some credit cards are provided with additional services such as the collection of air miles, priority concert tickets or cash back on purchases. However, these usually come with a fee to pay and so it is important when comparing credit cards that you will actually use and find these additional extras of use before committing to paying a fee for the privilege.

Credit cards are normally only issued after a credit check has been performed on the person or organisation applying for it, which means that those with bad credit may struggle to find a provider who will allow them credit. However, there are many companies who will provide credit cards for those with poor credit and a less than perfect credit history.