A credit card is a Buy Now Pay Now tool.Credit card is an unsecured loan that a financial institution provides us as a payment convenience.using this we intend to repay the amount added with the interest if we fail to repay the balance in full each month.There are three basic types of credit cards single payment credit ,installment credit, and revolving credit.In the case of single credit amount is paid in a single attempt for the services with in a stipulated period of time and usually interest is not charged for these type of cards.
Installment credit means that the payments are made for the merchandise and services in two or more scheduled payments and in this case the interest is included.Some of the examples of installment credit are retail businesses,credit unions etc.Using revolving credit type of cards many items can be bought until the the the total amount does not go over the users assigned limit and the repayment is made at regular intervals for any amount greater than the minimum required amount.Hence credit cards have increased the ability to buy the items now,and it eliminates the the necessity of carrying cash every where.
