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Credit Card The Credit Card is plastic credit card with a magnetic strip issued by a bank or financial institution. Holders of a valid credit card have the authorization to purchase goods and services up to a predetermined amount, called a credit limit. Explain Advantages and Disadvantages of Credit Cards The vendor receives essential credit card information from the cardholder, the bank issuing the card actually repays the vendor, and eventually the cardholder repays the bank through regular monthly payments. If the entire balance is not paid in full, the credit card issuer can legally charge interest fees on the unpaid portion. Benefits of Credit Cards to customers 1.  Convenience The main benefit to each customer is convenience as carrying a credit card eliminates the need to carry any cash for most purposes. 2. Credit card allows small short-term loans Compared to debit cards and checks, a credit card allows small short-term loans to be quickly made to a cu...