Credit cards have long been part of our daily economic life. So what is a credit card used for and what is the difference between it and ordinary bank cards?

1. What is a credit card?

Credit card is a non-cash payment method and a credit service provided by the banking industry. It is issued to the cardholder by the bank or credit card company based on the user's creditworthiness and financial resources. The cardholder does not need to pay cash when using the credit card and will repay the bill on the bill date. Except for some credit cards combined with debit cards, general credit cards are different from debit cards and ATM cards in that credit cards will not directly deduct funds from the user's account.

2. What is the difference between a credit card and a general bank card?

1. Credit cards can be used for overdraft consumption, while savings cards can only be used after a certain amount of money has been deposited.

2. You can choose password-free payment when swiping a credit card, but you must enter a password for a debit card.

3. There is no current interest on the money saved in the credit card, but there is current interest on the money in the savings card.

4. There is a handling fee for cash withdrawal with a credit card, but there is no cash withdrawal handling fee for a debit card.

5. The annual fee for credit cards is relatively high. For debit cards, some banks have annual fees, but most banks waive them.

6. It is more difficult to apply for a credit card than a debit card. To apply for a credit card, you need proof of income, etc., but for a debit card you can apply as long as you have the capacity for civil conduct.

3. The history of the development of credit cards

The earliest credit payment appeared in the United Kingdom at the end of the 19th century. It was aimed at wealthy people buying expensive luxury goods but not carrying so much money with them. British clothing The industry has developed a credit system, using record cards, to bring popular products back early when shopping. In the 1950s, the first credit card for the public appeared. McNamara, an American credit expert in Manhattan, organized the "Diners Club". After being approved as a member, you can bring a dining charge card to 27 designated restaurants to make accounts. Consumption, this is the earliest credit card.

Since then, as more and more cooperation partners have been signed, the scope of temporary overdraft services has also become wider and wider. People have also become accustomed to this convenient transaction method without having to carry cash, which has promoted the popularity of bank credit cards. In the United States, Franklin National Bank was the first bank to issue credit cards. Subsequently, the development of credit cards continued to become standardized and eventually became a part of our daily lives.