Dollarforcent
((A guiide for beginners)
Knowing the credit card types and how they function help you become a responsible consumer and understand their purpose, maximize benefits and avoid debts and financial ruin.
A credit card is the purchasing power of an individual, stored in plastic, metal, or digital card. It offers a revolving line of credit for making purchases.
Regardless of whether you slide the magnetic strip against the card reader, insert a chip-enabled card or go contactless, the card reader receives your information and sends it to the Merchant’s bank.
Secured credit cards work like debit cards, where your credit limit depends on your security deposit. The security deposit acts as collateral for the credit.
Cashback credit cards provide cash back on every qualifying purchase. The credit card issuer determines the amount of cashback and qualifying purchases.
Besides regular cashback, miles, or points, they’ll have additional perks on purchases at the co-branded merchants.