The credit card and the growing impact on the economy

Running head : ECONOMIC IMPACTS OF CREDIT CARDS

The credit card and the growing impact of the economy

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The credit card and the growing impact of the economy

A credit card is a card that enables a holder to purchase goods and services based on a promise to pay for them . As such , a credit card forms a part of payments system through which individuals can buy products based on promises to pay . The issuer of the card , usually a bank , gives a line

of credit to the holder of the card and from this line , a holder can borrow money to pay for goods and services or as cash advance . A holder of a credit card is able to revolve his or her balance but at the cost of certain pre-established interest . In to get a credit card from a local bank or a credit union , a user is required to open an account with the bank or union in question after which the bank approves the account and then issues out a credit card . Today , many consumers in many countries are able to pay for their purchases using credit cards . In fact , the level of consumption has increased in many countries over a period of time despite the fact that this trend may and already has in some countries shifted negatively with consumers rethinking their reliance on credit cards

If and when a user purchases goods or services using the card , he agrees...