credit card

noun

Definition of credit card

: a card authorizing purchases on credit

Examples of credit card in a Sentence

Recent Examples on the Web

Never pay over the phone using gift cards or reloadable credit cards. — Billy Kobin, The Courier-Journal, "Andy Beshear warns of a new scam targeting Kentucky's teachers and schools," 22 Aug. 2019 Twitter: @techchronicle Apple tried to make its new credit card attractive, copying the heft and sleekness of higher-end cards like the Chase Sapphire. — SFChronicle.com, "APFN-US--Apple Card-Special Care," 22 Aug. 2019 The story is told largely through her character’s eyes, as Ramona takes Destiny under her wing and teaches her the art of the steal — spiking men’s drinks and swiping their credit cards. — Joey Nolfi, EW.com, "How Jennifer Lopez bared body and soul to find heart in Hustlers," 16 Aug. 2019 Also in the news, Apple is now taking applications for its new credit card, and Samsung unveils its new Galaxy phones. — Wired Staff, WIRED, "Amazon's Quest for World Domination," 9 Aug. 2019 Good to know: Leave your credit card behind because this hammam is cash only. — Starlight Williams, National Geographic, "Finding the perfect soak in Marrakech," 7 Aug. 2019 Then, in 2009, after maxing out their credit cards and investing their savings, Kim and Leifur opened Pizzeria Lola. — Katherine Lagrave, Vogue, "Meet the Women Behind Minneapolis’s Food Revolution," 6 Aug. 2019 Insider tip: To snag a reservation, sign up from Nodoguro’s mailing list, wait for the email notice and have your credit card ready. — Michael Russell, oregonlive.com, "Portland’s Nodoguro is one of America’s most exclusive Japanese restaurants (2019 review)," 3 Aug. 2019 Riders can tap a credit card or smartphone on an electronic reader and keep walking. — New York Times, "So Long, Swiping. The ‘Tap-and-Go’ Subway Is Here.," 30 July 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'credit card.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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More Definitions for credit card

credit card

noun

Financial Definition of credit card

What It Is

A credit card is a plastic card issued by a financial institution that allows its user to borrow pre-approved funds at the point of sale in order to complete a purchase.

How It Works

Credit cards have a maximum amount -- or credit limit -- the user can borrow during a given period. The credit limit is pre-determined by the card issuer based on the cardholder's credit rating and credit history.

When an individual uses a credit card to make a purchase, he or she is authorizing the credit card issuer to pay the merchant on their behalf. Merchants are required by law to verify that the individual using the card is its rightful owner by obtaining proper identification via a Personal Identification Number (PIN), and/or a driver's license or state-issued ID card.

Merchants generally prefer payment by credit card because they are immediately paid by the card issuer – despite the fee the merchant must pay to the card processing company for each transaction.

[InvestingAnswers Feature: Credit or Debit? Your Choice Could Cost You 3%]

Credit card issuers require the cardholder to pay his or her balance in full, usually on a monthly basis. If the user does not pay the balance in full, the issuer adds interest to the balance, and this interest compounds for as long as the balance is outstanding.

As with credit limits, the cardholder's credit rating and credit history can influence the interest rate on the card. In some cases, the issuer can raise the interest rate. There is no federal limit on the interest rates credit card issuers can charge, although many states impose different caps. Many card issuers offer "teaser rates" that start out very low and increase over time.

[InvestingAnswers Feature: How to Choose the Best Credit Card Offers]

Issuers use several methods to calculate interest, and it is important for the cardholder to read and understand the issuer's disclosure statement in order to avoid unpleasant surprises. Many credit cards also charge an annual fee, late payment fees, fees for going over the credit limit, cash-advance fees and foreign-currency conversion fees.

Why It Matters

Credit card interest rates are higher than personal loans or lines of credit. Many credit cardholders underestimate the time and money it takes to pay off outstanding balances -- especially when interest rates are high and minimum payments are low.

[InvestingAnswers Feature: Avoiding the Six Most Common "Black Holes" in your Family Budget]

It is important that cardholders not only use credit cards in moderation, but also take preventative action against identity thieves in order to protect their privacy and identity.

Credit cards allow cardholders to avoid carrying cash, earn frequent-flier miles, or accumulate other "rewards" that can be used almost anywhere around the world. With many credit card types, the cardholder can also get cash advances through ATMs.

Source: Investing Answers

credit card

noun

English Language Learners Definition of credit card

: a small plastic card that is used to buy things that you agree to pay for later

See the full definition for credit card in the English Language Learners Dictionary

credit card

noun

Kids Definition of credit card

: a card with which a person can buy things and pay for them later

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credit card

Definition of credit card

Examples of credit card in a Sentence

First Known Use of credit card

Financial Definition of credit card

English Language Learners Definition of credit card

Kids Definition of credit card

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