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Just about anywhere in the world, at any time and in any situation, credit cards give their holders access to funds and allow them to purchase goods or services as if they were handling cash.

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Many other uses
Although all credit cards serve basically the same purpose - making purchases, and either delaying payments or making them in installments - they can also offer other services and added values, such as life, car or accident insurance, frequent-use points or access to preferential treatment depending on the contract between the user and the financial institution that issued the card.

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In general, we must ditinguish between two kinds of credit cards: those issued by banks y those issued by specific stores for use in that establishment.

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As the name suggests, a credit card gives its holder "credit," so long as he or she meets security standards (secret number, signature, photo). Either with a magnetic strip or number sequence, credit cards allow purchases without the cost being deducted immediately from the holder's bank account, as is the case with debit cards.

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Contracts
Keep in mind that holders of credit cards must specifically ask for them. So cards sent out for free don't follow good banking practices. The European Union recommends that the contract between holder and issuer be considered consumated once the user has received the card and a copy of the terms governing its use.

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Credits cards take time to be issued once they are requested. Banks or stores need to check a client's solvency to determine his or her creditworthiness. If the answer is affirmative, the bank links the card holder to a bank account, generally in the holder's name. There the transactions will be recorded.

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In the credit card application the following conditions should be spelled out: the card is personal and non-transferrable; it can be renewed when its expiration date comes around; there is a limit to the maximum credit available in any one purchase and a daily limit as to its availability. If the card is lost the holder must tell the bank or store immediately. And all transactions done with the card are reflected in the account opened in the holder's name.