A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder’s promise to the card issuer to pay them for the amounts plus the other agreed charges. Credit card debt is an example of unsecured consumer debt, accessed through credit cards. Debt results when a client of a credit card company purchases an item or service through the card system.

A second chance at financial freedom

A good credit balance is important for anyone to have. Loans are a necessary part of life for most of us. Building a solid credit history and maintaining a high credit score can have a dramatic impact on your quality of life now and in the future when you’re considering applying for a loan or even a prepaid debit card.A better credit score will also lead to better interest rates on your credit cards or other loans. Better interest rates mean less money spent paying off the loan, as well as lower monthly payments.