What is a Credit Card?

A Credit Card

What is a Credit Card and is it something you really need....

Credit Cards are a form of money lending, instead of borrowing a lump sum of money from a bank or financial institution you pay for what you use. Credit Cards were developed back in the 1920's in the USA, Originally these cards were designed to sell petrol however since this time evolved into what we now now as the Credit Card or charge card.

Some people get confused between the term Credit Card and Debit Card, they are two totally different services offered by financial institutions:

• A Credit Card - is you borrowing money from a banking institution on specific purchases made, you want to buy a new dress or CD and put it on your Credit Card means you are borrowing money from the bank to buy this product or service. Once purchased you then are committed to paying interest on the amount loaned off your card. Credit Cards are dangerous as you never see the cash only the bill at the end of the month, they are not good for people who cannot control spending or there money.

• A Debit Card - this is a totally different tool, the debit card allows you the access of a cashless life but it is directly debiting or withdrawing fund from your savings or every day bank account. This option makes its fees by the transaction fee when you purchase an item. Debit Cards are a better way to go if you have funds and do not need to borrow money to make purchases (it is you money being spent, not the banks!).

In Australia there are hundreds of card types and options available. Almost all banks and credit unions offer a card in one form or other, in recent years other companies have jumped on this program due to its lucrative revenue generating programs. It is not uncommon to see department stores and Airlines now offering credit cards with their own special rewards and bonus schemes, all new ways to hold you the consumer close to their brand and products and services.

If your looking for the latest Credit Card offers and to understand which card is best suited for your needs please visit a great independant reviuewer and Credit Card comparison website at www.CreditCards.com.au - Click Here