The term credit card is used for different types of cards. With a “real” credit card, the cardholder is granted a credit limit. This can be a maximum credit limit, such as 2,500 GBP. Alternatively, the monthly credit limit can be 1,000 GBP, for example. The amount of the credit limit depends on the respective conditions of the card and the provider.
Depending on the provider, the amount used with the card can be settled once a month or paid off in instalments. How a credit card works therefore always depends on the card conditions. In addition, there are the so-called prepaid credit cards, which are managed on a credit basis. (more…)