Credit
cards are small, rectangular
plastic cards. Banks give these cards to their customers. When the
customer buys something at a store, he shows his card at the store.
This authorizes
the store to charge the bank for the customer's purchase. The bank
collects all the charges
for each customer. Then once a month the bank requires
the customer to pay
all the charges for
that month. The bank does not force the customer to pay the full
amount. It allows the customer to pay for the charges in several
payments over a period of time. However, the bank requires the customer
to pay interest
on the unpaid part of the charges.
In this way the bank allows
customers to buy things they cannot afford at one time. People can
use the card to buy what they want and pay for it over a period
of time. They also do not need to carry a lot of money.
Today, more and more people in the
U. S. are using credit cards instead of money to buy the things
they need. Almost anyone who has a steady income and good work record
can apply
for a credit card. There are many credit cards available:
American Express, Master Charge, VISA, and Diner's Club are the
names of some of the most popular. |