Jasleen-Jonathan-Raidy

Glossary

A **__credit limit__** is the maximum amount of credit that a finalcial institution or other lender will extend to a debtor for a particular line of credit sometimes called a credit line, line of credit, or a tradeline.A **__credit card__** is part of a system of payments named after the small plastic card issued to users of the system. A **__charge card__** is a means of obtaining a very short term usually around 1 month loan for a purchase. Any fee that is charged on an annual yearly basis. One of the most common occurances of an annual fee is the fee that is charged by some credit card companies to their credit card holders, simply for having the credit card. This fee is charged regardless of anything else the amount or value of purchases with the credit card, for example.

I learned that Credit cards can be useful if you know how to use them. The main reson that Credit cards are used is to buy now pay later. However there is a negative towards having a credit card. If you dont keep track of your Credit card you can find yourself in a huge debt problem