Credit Card is a system of payment mode named from the small plastic card. In credit card the issuer lends money to the consumer.

In general, a credit card allows the user to revolve their balance, at the price of having interest charged. A credit card is opposite to a debit card. It will not remove money from the user's account after every transaction.

It is also different from a charge card which allows the balance to be paid in full.

Credit Card's Grace period

A credit card's grace period is the time the user has to pay the balance amount, before interest is applied to the balance. Grace periods usually differ, but the range is from 20 to 55 days depending on the type of credit card and the issuing bank.

Credit cards in ATMs

Many credit cards can also be used in an ATM to withdraw money, from the credit limit Offered by the bank. The interest on cash is usually charged from the date the cash withdrawal is made not from the the monthly billing date.

Bankers do not offer cash back on credit card transactions because they might pay a commission of the additional cash amount to their bank which is certainly uneconomical.