Credit Card Definition: A credit card is a plastic card with a chip that provides access to a line of credit or credit card account for purchasing goods and services. Cardholders can use credit cards to book vacations online, buy goods, or in person at a retail shop or store.
When a customer receives a credit card, this occurs after they are approved for credit, which allows them to use up to a defined amount, known as the credit limit, with the agreement to pay it back in full, with interest. Some credit card products offer perks or additional benefits, including collecting vacation or reward points or cash back towards future purchases. Discounts and promotional deals are also options with some credit cards.
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