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CREDIT CARD
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This is a form of unsecured loan extended by financial institutions to individuals. The financial institution checks the income sources of an individual, and verifies his creditworthiness. Based on this, it may issue a credit card to an individual with a predefined credit limit.

Some financial institutions may charge a yearly fee for extending this facility.

This is also referred to as plastic money, as a credit card is a flat, pocket sized piece of plastic with a magnetic tape on it that stores data about the owner and the transactions.

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