Credit Cards

As we’ve discussed, credit itself is a concept. But how does that concept appear in daily life? The most common use of credit is through consumer credit cards.

You probably even have one or more.

What Are Credit Cards?

Credit Cards are a physical tool issued to consumers by credit card companies, banks, credit unions or other lenders. The card enables the user to make purchases “on credit.” When you head to the electronics store and use a credit card to buy a television, you’re using credit. Similarly, you can also use a credit card to make purchases online. (You can also sometimes use a credit card to draw cash out of an ATM or at a bank in a process called “cash advance”—but we never recommend that.)

The most popular credit cards are:

  • Visa
  • MasterCard
  • Chase
  • American Express
  • Discover Card2

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