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Credit Card Articles

What is Credit Card

The Credit Card is a plastic card issued by a financial institution allowing the credit card holder to buy goods and services on credit. The credit card entitles the owner of the credit card to a line of credit. The credit card is a convenient payment tool, widely accepted throughout Canada and the world. Usually the credit card outstanding balance has to be repaid monthly and interest is charged on it, if not paid in full.

Credit cards are convenient way to pay for purchases, without caring around cash or cheques. When the credit card holder pays something with a credit card the money are not withdrawn from the account, instead of that the credit card issuer lends the money to the buyer.

The 3 major credit cards are Visa, MasterCard and American Express. There are several types of credit cards, with the most popular being the bank credit card (credit cards issued by banks, usually Visa and MasterCard). Another major credit card type is the Travel & Entertainment credit card type (American Express and Dinners Club). Finally there are the store credit cards, which are good to buy in particular store (Zellers HBC credit card for example).

Canadian credit card market is very competitive and Canadians can benefit greatly from this fact. Because the credit card market is highly competitive Canadian consumer can choose between many different credit cards, depending on its needs. There are no annual fee credit cards, low interest credit cards, rewards credit cards, etc. There are more than 50 million Visa and MasterCard credit cards in circulation in Canada and more than 620,000 outlets accept credit cards as payment method.