Share This Article:

Economic Definition of credit card. Defined.

Offline Version: PDF

Term credit card Definition: A piece of plastic (about 2 inches by 3 1/2 inches) that authorizes a user to make use of a pre-established loan (or line of credit) with a bank, store, or other business when conducting transactions (that is, buying stuff). Credit cards a simply a means of easily and quickly borrowing the funds needed to make a purchase. Some folks confuse credit cards with money, using the term "plastic money," in that both are used to facilitate purchases. However, credit cards create a liability (the loan), while money is an asset. The only real plastic money is debit cards.

 

« credit | credit crunch »

Permalink: http://glossary.econguru.com/economic-term/credit+card

Alphabetical Reference to Over 2,000 Economic Terms