What is a credit card?

Credit cards provide a flexible and convenient way to pay for products and services. Credit card holders have the permission to buy goods up to what is called the credit limit.  Credit limits vary depending on your status and how much money you earn, so the higher the salary, the more the credit limit.

The bank issuing the credit card receives regular monthly payments to pay off the balance on the card. If the total balance is not paid in full, the credit card issuer will charge an interest on the remaining debt.

There are 100’s of credit cards available and this guide will try and differentiate the most common types and help you choose the right credit card for yourself.