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A credit card lets you spend money taken on a loan. The owner is indebted to pay the money used each month to avoid paying additional credit card charges on the borrowed money.
The card comes with limits, and you cannot spend more than the limit set on the card. As you swipe it, the merchant’s site or the machine sends a message to the site to ensure if it is valid or not.
It also checks if it has adequate available credit. Once the issuer sends a message to the merchant – the transaction is approved or declined.
If it is approved, the payment for goods is made. To buy the first credit card, you should try to get the list of the low rate credit cards and compare the associated costs/credit card charges.
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