how do credit cards work?
100029
when in doubt, go to wikipedia.
520847
The credit card was the successor of a variety of merchant credit schemes. It was first used in the 1920s, in the United States, specifically to sell fuel to a growing number of automobile owners. In 1938 several companies started to accept each other's cards.\n\nThe concept of using a card for purchases was invented in 1887 by Edward Bellamy and described in his utopian novel Looking Backward. Bellamy uses the explicit term "Credit Card" 11 times in his novel (Chapters 9, 10, 11, 13, 25 and 26) and 3 times (Chapters 4, 8 and 19) in its sequel, Equality.\n\nThe concept of paying merchants using a card was invented in 1950 by Ralph Schneider and Frank X. McNamara in order to consolidate multiple cards. The Diners Club produced the first "general purpose" charge card, which is similar but required the entire bill to be paid with each statement; it was followed shortly thereafter by American Express. Western Union had begun issuing charge cards to its frequent customers in 1914.\n\nBank of America created the BankAmericard in 1958, a product which eventually evolved into the Visa system ("Chargex" also became Visa). MasterCard came to being in 1966 when a group of credit-issuing banks established MasterCharge. The fractured nature of the US banking system meant that credit cards became an effective way for those who were travelling around the country to, in effect, move their credit to places where they could not directly use their banking facilities.\n\nThere are now countless variations on the basic concept of revolving credit for individuals (as issued by banks and honored by a network of financial institutions), including organization-branded credit cards, corporate-user credit cards, store cards and so on.\n\nIn contrast, although having reached very high adoption levels in the US, Canada and the UK, it is important to note that many cultures were much more cash-oriented in the latter half of the twentieth century (Germany, France, Switzerland, among many others). In these places, the take-up of credit cards was initially much slower. It took until the 1990s to reach anything like the percentage market-penetration levels achieved in the US, Canada or UK. In many countries acceptance still remains poor as the use of a credit card system depends on the banking system being perceived as reliable.\n\nIn contrast because of the legislative framework surrounding banking system overdrafts, some countries, France in particular, were much faster to develop and adopt chip-based credit cards which are now seen as major anti-fraud credit devices.
999783
Most banks will open an account for you, however a credit card is an extension of credit which the application is a legal document.  The bank must follow the law that governs your state.  State law dictates how old you must be to sign a legal credit agreement.  Each state is different.  You will need to contact your bank.
1147912
The banks charge the merchants and stores a fee (around 2-3%) for providing the equipment and the verification system any time someone scans a card and so on, so the store loses out slightly, but they don't have to deal with checks, which take forever to clear.\n\nThe credit card companies like Mastercard are owned by the banks.  For example, MC is owned by 25000 different banks, so I'm not sure if they actually pay the MC corporation but they might.\n\nAMEX is slightly different because it's a whole separate company.  They just charge a higher fee to the merchants, which is why some don't take AMEX and do take Visa/MC.
975344
if your debit card is a "check card" and has a visa or mastercard logo on it, it works just like a credit card, only you have to have the funds available in your checking account in order for the purchase to be approved.
1089731
http://www.creditcard321.com/\nBut be careful when getting a credit card, period.\nGet one only for emergencies or don't get one at all. The debt thing in america is out of control.
1010822
Let's say you have 4 credit cards with varying balances and interest rates.  You take a loan with a lower interest rate than the cards have and pay them all off.  Now you have 1 payment instead of 4, with a total lower payment than the four combined, and probably a shorter time required to pay the debt off.
759054
they have those secured credit cards, where you put up a savings account and they give you that amount in credit. It shows on your credit report as a credit, so you build credit that way.\nhttp://www.bankrate.com/brm/news/cc/19990823.asp
150217
A debit card usually isn't a problem, this has to do with banks and they have their own system for checking good standing in the banking system. As long as you don't have a slew of bounced checks somewhere you should be allright. A credit card is harder. Lots of time you just have to wait a little while.Here's a good idea, some jewelry stores will offer credit to anyone. I did this and received three credit cards within a matter of weeks. I didn't have a bankruptcy,though, but I had really awful credit and I tried for three years to get a credit card.
42721
Getting good credit is not an easy road. Whether you choose to get a Credit Card, A Store Revolving Credit Card, or even purchase a car, you've got to be very very disciplined. \nI suggest never purchasing anything with a credit card that you couldn't with your bank card. At the end of EVERY month, pay off the entire balance.\n\nDo not apply for many credit cards. Find the credit card with the best terms and interest rate, apply once, and watch it carefully. \n\nYou're Credit Score is determined by your credit limit, your credit/debt ratio, length of time of your credit history, payment history, credit inquiries, etc.\n\nI suggest checking your credit report for free. You can check it once per year per reporting agency. I suggest checking one agency every 4 months (=12 months). Checking your own credit report does not hurt your credit score. If you purchase a score with your report, usually they'll give you suggestions to improve your score.
621526
If you want to know how the credit scoring system works...go to the source.\n\nhttp://www.myfico.com\n\nThis is the home site for the folks who developed the FICO scoring system.  It contains information on how it's put together, tips on how to improve it, lots of other educational info.\n\nThey also can sell you your credit score, but the neat thing is it will also include a detailed explanation of what may be keeping it low, and what you can do to improve it.  It's very specific and may help you a lot.
456519
Credit cards are easy to get.  TOO easy if you ask me.  You can apply online, call the company, or apply through your bank.  BE CAREFUL though because they will give you a card and a maximum limit and it is so easy to just start spending.  I have a friend who racked up credit cards when she was 17 and 18 and she barely, barely paid them off (she is 27).  They are not your friends.  Make a habit of only spending what you make and having one to only use in emergencies like unexpected car repair.  Good luck and God bless.
216252
The best credit card for anyone is a Visa or Mastercard debit card (not technically a credit card).  If you need the use of a credit card and can afford to pay for it, just use that money to open a checking account and use the debit card instead.  If your intention is to build your credit, do it with other forms of debt like an auto loan.  The only good credit card is one with a zero balance.
51770
You don’t need credit card for every thing but some cases like on internet some site only accept credit card for receiving payment because credit card of any country is accepted all over the world.
201453
Absolutely close or cancel any un needed cards. If not for security reasons alone. Banks look at how much credit you have"open" and available to you. They compare this to your income to get a ratio. A debt to Load ratio. So if you have 5 cards out. that's realistically 3 too many.You need to keep a "balance" between having some credit cards and too much debt. You need a few cards open and active to satisfy the companies that you are worthy of more credit but not too much to have them think that their acct is the one that you will default on.
94581
The ones that stores offer are relatively easy to get and you can use them to build your credit so you can get a major card later.  However, don't let the balance get out of hand, those cards from stores have stricter penalties and higher fees.
589784
A credit card, such as VISA or MasterCard, allows you to pay for sales or services by borrowing against your line of credit with the credit card company and to make monthly payments on the outstanding balance. A charge card, such as American Express requires payment in full each month of the outstanding balance charged to the account. \n\nAs for who is eligible to obtain it....that depends on the specific creditors requirements although one cannot not be a minor.