What is a credit card, a comprehensive guide (the difference between a credit card and a prepaid card...)

 What is a comprehensive credit card guide

I found many who ask what a credit card is, especially young people who want to get involved for the first time in financial institutions, specifically banks.

Credit cards are very fast spreading, because of their significant and many advantages over their users, as you can now spend all your financial purposes sending and delivering funds through this credit card.

In addition to the process of paying money when you buy, from a shop whatever its kind, without having to pay the money in the traditional cash way ( Cash).

In this article and through your chance site forsatoka we will introduce you to many credit card benefits, introduce us to them, and share a range of points such as: credit card types, credit card number, difference between credit card and prepaid card, credit card judgment... etc.

What is a credit card

A credit card, or as it is called credit cart, is a small card issued by a financial institution (bank), which provides the owner with the possibility to withdraw, pay and send money.

It is also a plastic card, enabling owners to purchase online all the products and other services it needs.

The credit card is based on deferred payment, i.e. when you purchase a particular product or service, it is the financial institution that delivered this card to you that is charged with paying the money on your behalf, on the basis that this amount paid is refunded to the financial institution at the moment the transfer enters your bank account.

Today, credit card has played a major role in e-marketing, but there are two types of credit cards, including what is global, i.e. you can buy products from any country you want.

For example, master card, visa and american express cards are local, i.e. they are valid for multiple uses, but within a specific geographical area.

Types of credit cards

 

There are many types of credit cards, the most important of which are:

Charge card: This card enables you to purchase any product or service, at the expense of the financial institution, on the basis that this amount is paid later and without interest.

Banc card: It's what your banking organization gives you, the story of delivering your monthly transfer... In fact, this card is a loan that the holder can purchase everything in need, where it is paid, on the basis that the payment is paid later.

Debit card: This card allows the holder to pay from his own money on the account number of this card at the time of purchase, i.e. the card is withdrawn directly when purchasing any product or service, as is the means of a bank card that obscures you to borrow the financial institution and pay later.

AUTOMATER TELLER MACHINES ATM BANK CARD: This card enables you to make many banking transactions, such as transferring funds between different accounts, paying bills, depositing, withdrawing and sending money... etc.
Secured credit card: This credit card is delivered to people who do not have a guaranteed credit line, due to the loss of a regular credit card due to financial problems, so that this card is used as any normal credit card.

Smart card: Inside this card there is an electromagnetic chip, and the ATM can read the information inside without difficulty. However, this type of card is not very widespread, especially in our Arab countries.

Prepaid card: This card allows you to install a certain amount, and whenever it is used to purchase or transfer, the amount already installed is deducted until the amount has expired. This card is very similar to the phone call cards.

Affinity card: This card is provided by organizations and associations, in order to bring a group of people to participate and acquire this type of card, in return this association or organization earns a commission for the income generated from the use of this card.

Double-brand reward card: Intervenes in the manufacture of this card two different sides, so that the two parties benefit from it, the first party benefits from depositing consumer money in its safe, and the second party benefits by installing its name as a trademark on the card.

Rebare Rewards Card: This card offers a reward to all users.

The difference between a credit card and a prepaid card

Due to the growing demand for electronic marketing, financial institutions have decided to authorize their users to purchase online using a credit card, as you can purchase at a borrowing from the financial institution, on the basis that the amount will be paid later. This process is carried out directly and through this credit card.

But what about those who do not wish to use their credit card for fear of being misinformed, or whose circumstances do not allow them to obtain a credit card?

So here came the idea of a prepaid card, so that you can use this card to buy, but the payment is made directly and immediately and you are the one doing this, meaning without waiting for your financial institution to do so. The indication is that the amount you will buy must be available in the account of this card.

Best Credit Card

There are many credit cards without salary transfers in Saudi Arabia to name a few:

⬅️ American Express Card

⬅️ Visa Signature Card

⬅️ Visa Platinum Credit Card

⬅️ Development Development Card

In my article, I tried to talk about a significant number of topics related to the credit card, knowing it at the beginning of our article, mentioning the types of credit cards, specifying their judgment... etc.

I hope that the article has impressed you and that I have answered your questions, if so do not forget to share the article with those you think is in dire need of it.

You lasted health and wellness, thank you.