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Technology has not only made life easy but by virtue of technology, life on earth has become fast as well. Technology has given us lot of gifts. Technology has produced many useful things. One of the highly functional products of technology is the credit card. Credit cards are easy to carry and easy to use and are a great utility for the cardholders. Virtually anything can be purchased using a credit card. One no longer needs to carry cash or checks while going for shopping or while traveling or even have to worry about their account balances at the time of a purchase. Credit cards are accepted almost everywhere whether it be for a trip, groceries or a new pair of shoes.

A number of credit cards are available in the market today. A person with bad or no credit history can still apply for the credit card in an issuing company or bank with positive results. There are so many available choices that you can choose credit cards according to your personal needs and requirements such as allow interest rate credit card, to reward credit cards or cashback to name a few.

If you look hard enough, you may even find 0% interest rate credit cards. All credit card companies have varying interest rates. Interest rates typically increase if the card holder is late with their payment on that card or if there is an introductory low interest rate period. Different companies also provide different credit card offers for the card holders In this case both credit card holder and credit card issuing company benefits from these offers.

Credit cards are issued after an account has been approved by the credit provider. After the approval, cardholders can use it to make purchases at merchants accepting that particular card such as Visa, MasterCard, American Express or Discover.

How it works is the issuer pays the merchant on behalf of the consumer (or the user) and the customer then pays the issuer on a monthly basis. One of the most important factor (while choosing a credit card) that needs to be considered is your source of income for repayment that you have to make to the card issuing bank in the longer run.

When something is purchased on a credit card a transaction of money takes place between the bank of acquirer and the card issuing bank. The card holder gets 30 days to pay for the purchase free of interest.

After 30 days interest is charged on the purchase which cardholders have to pay to his/her issuing bank or risk penalties and interest on top of the principal payments. The best advice is to stay within your limits and try to pay off your monthly credit card bill in full or at least as much of the principal as you can.