Krediitkaarti

Krediitkaarti is the Estonian word for credit card. A credit card is a payment card issued to users (cardholders) to enable them 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 other agreed charges. It is a form of revolving credit.

The cardholder can access a line of credit, which is a predetermined borrowing limit. When the cardholder makes a purchase, the amount is deducted from this credit limit. At the end of a billing cycle, the cardholder receives a statement detailing their transactions, the total amount owed, and a minimum payment due. Cardholders can choose to pay the full balance, the minimum payment, or any amount in between. If the full balance is not paid by the due date, interest is charged on the remaining amount.

Credit cards are widely used for everyday purchases, online shopping, and travel. They offer convenience and can provide rewards such as cashback, points, or travel miles. However, it is important for cardholders to manage their credit responsibly to avoid accumulating debt and incurring high interest charges. Responsible use of a credit card can also help build a positive credit history, which is beneficial for future financial endeavors like obtaining loans or mortgages. Different banks and financial institutions offer various types of credit cards with different features, interest rates, and benefits.