What Is a Credit Card? A credit card is a thin rectangular piece of plastic or metal issued by a bank or financial services company, that allows cardholders to borrow funds with which to pay for goods and services with merchants that accept cards for payment.
The definition of credit card is a piece of plastic with imprinted numbers that is used as payment instead of cash. A Mastercard is an example of a credit card. … The bank or financial institution issuing the credit card pays the merchant and then sends a monthly bill to the holder of the credit card.
The biggest advantage of a credit card is its easy access to credit. Credit cards function on a deferred payment basis, which means you get to use your card now and pay for your purchases later. The money used does not go out of your account, thus not denting your bank balance every time you swipe.