Credit card is a card issued by a bank which allows consumers to buy a product or services from a merchant on credit(i.e.) banks provide loan to you through a credit card. You can use a credit card in various places like in stores, ATM machines or online etc. Banking giants like Citi Bank, Chase, Wells Fargo, National City Bank, Bank of America offer several credit cards to those who qualify for the same.

Visa, MasterCard are the world's largest payment systems and they have their own network to authorize the credit card transactions. Banks issue credit cards to consumers and they use these VISA, Master Card payment systems for all types of transactions done on credit cards by the consumers.

Credit cards are offered by banks to consumers at fixed or variable interest options. Credit Cards are of different categories and based on needs one can get a personal credit card, student credit card, secured credit card, business credit card, balance transfer credit cards, etc. In US, retail giants like WalMart, BestBuy, CircuitCity issue their own credit cards to attract customers.

In USA, whenever consumers apply for a credit card(individual credit card or joint account), their credit score is checked against the major Credit History Bureaus and if their credit score is good, then credit cards are issued to them. Once approved, the consumer gets the credit card within 10 business days with good credit limit. If credit score is not good, then the application is denied and the consumer may be asked to go for secured credit cards.

Once in a month, a bill would be sent by the bank electronically or by post to the card holder. Every month the card holder would be asked to pay either the minimum blance or the total balance available on the credit card and it can be paid electonically or by post. If the minimum due is not paid, then penalty charges are applied and credit score would get spoiled.

Since there is no credit score for newcomers to USA, most banks won't issue a credit card to them and they may be asked to go for secured credit cards.

Before applying for credit cards, it is better to shop around and compare the product features(interest rate, cashback, redemption offers, balance transfers, rental insurance, travel insurance etc) of different credit cards available in the market.

You may talk to the bank to increase or decrease your credit card limit whenever there is a need for it.

Record your transactions regularly. Take a time to review your monthly statements or bills sent by the bank.

Whenever there is a fraud transaction on your card, contact the bank immediately and they would provide you with assistance to resolve those problems.

If your credit card application is denied, you have the right to ask your bank to provide credit denial reasons.

Its better to apply for a new credit card once you get good credit score. Otherwise, your credit card application would once again be declined.

Debit Cards