A credit card is a small plastic card issued by the bank to its customer allowing him to purchase goods or services on credit.
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Credit card:
A credit card is a small plastic card issued by the bank to its customer allowing him to purchase goods or services on credit.

• Credit card allows to make payments and shop without giving money physically to the merchant.
  The use of credit card became quite wide spread since the end of 20th century.
• To obtain a credit card one needs to apply to its bank. The bank then conducts a systematic study on the credit of that person. The bank studies how much debt can that person pay in a given time. Based on this the bank sets a credit limit for that person and issues him a credit card.
• For example, if a bank studies and finds that a person can pay maximum 20,000 rupees per month then it sets this limit on his credit card i.e. he can use his card to credit money from his account and deposit it in merchant’s account. When the person uses his credit card for purchasing something, the amount get debited from his account i.e. his credit limit and gets credited to seller’s account.
• The bank calculates the total money spent by the credit holder in a month and sends him a credit card statement. The customer needs to make this payment to his bank as per the time limit given by the bank.
• This card can be used while shopping at stores, malls, making online payments like tickets, payment to online stores, etc.