What is a credit card and how does it work?

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Being a payment method widely used nowadays, the credit card basically consists of a form of loan with a well-defined payment period, which lasts 40 days.

Understanding what a credit card is, as well as how it works, is the best way for you to better manage your expenses. It is a quick and practical solution for making purchases, but it is necessary to be aware of its main features.

Is the credit card the hero or the villain? The answer to this question will depend on how you are going to use it.  

Fortunately, it is not difficult to understand cell phone number list how a credit card works. Therefore, check out the post we prepared for you on this very important subject that has everything to do with managing your finances .

What is a credit card and what is it for?
In practice, a credit card is basically a simple and quick form of loan, which allows and facilitates the payment of purchases, as it makes it possible to purchase products or services through installments and in installments.



The credit card arrives for you with the interest rate and limit duly established by the bank. Fees generally also have a standard, however, the limit is stipulated according to your income.

This type of card can be considered a loan because it releases credit for the customer to spend over the course of the day, allowing payment to be made when the invoice is due.

Each and every credit card has a brand, which can be Mastercard, American Express or some other financial institution. In the case of the Rico card , the brand is Visa.  

The main purpose of the brand is to link transactions between the consumer and the credit card issuing institution.  

While the institution regulates operations, determines the limit for purchases, establishes maintenance fees and sends the invoice to the consumer, the brand aims to manage the technologies involved in transactions.  

Such technologies range from physical card payment machines to the accreditation of establishments.

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