1. What is a credit card?
Credit card is a non-cash payment method and a credit service provided by the banking industry. The bank or credit card company will issue it to the cardholder according to the user's credit and financial resources. The cardholder does not need to pay cash when spending with the credit card, and will make repayment on the billing date. Except for some credit cards combined with financial cards, general credit cards are different from debit cards and ATM cards, and credit cards will not directly deduct funds from users' accounts.
second, what's the difference between credit cards and ordinary bank cards?
1. Credit cards can be overdrawn, while savings cards can only be spent by depositing a certain amount of money.
2. You can choose to pay without secret when swiping a credit card, and you must enter a password for a savings card.
3. Money deposited in a credit card has no current interest, while money in a savings card has current interest.
4. There is a handling fee for cash withdrawal by credit card, but there is no handling fee for cash withdrawal by savings card.
5. The annual fee for credit cards is relatively high. Some banks have annual fees for savings cards, and most banks are exempt from annual fees.
6. It is more difficult to apply for a credit card than a savings card. You need proof of income to apply for a credit card, but you can apply for a savings card as long as you have civil capacity.
Third, the history of credit card development
The earliest credit payment appeared in Britain at the end of the 19th century. In view of the fact that rich people bought expensive luxury goods but didn't carry so much money with them, the British clothing industry developed a credit system, which used credit cards to take popular goods back as soon as possible when shopping. In the 195s, the first credit card for the general public appeared. McNamara, a credit expert in Manhattan, USA, organized the Diners Club. After being allowed to become a member, he could charge the consumption by bringing a dining charge card to 27 designated restaurants. This is the earliest credit card.
Since then, more and more partners have signed contracts, and the scope of services available for temporary overdraft has become larger and larger. People have also become accustomed to this convenient transaction form without carrying cash, which has promoted the arrival of bank credit cards. Franklin National Bank of the United States was the first bank to issue credit cards, and then the development of credit cards has been continuously standardized, eventually becoming a part of our daily life.