Features
The major features of a credit card include:
- Credit Limit:It is the maximum amount of money that can be borrowed. This limit is determined by the card issuer based on the individual's creditworthiness and income.
- Annual Percentage Rate (APR):The APR is the interest rate charged on the outstanding balance on the credit card.
- Grace Period:The grace period is the time during which the cardholder can pay the balance in full without incurring any interest charges.
- Rewards and Benefits:Many credit cards offer rewards programs, such as cash back, points, or miles, for using the card to make purchases.
- Security:Credit cards come with security features like fraud protection, zero liability for unauthorized transactions, and the ability to dispute fraudulent charges.
- Credit Score Impact:User’s credit score is effected by usage of the card based on factors like payment history, credit utilization, credit history etc.,