Question

While aboard a WestJet flight, the steward-person comes through the cabin asking anyone, if they would like to apply for the RBC WestJet Rewards MasterCard. This credit card is an example of:

Answer 1

A credit card is a card issued by a financial institution such as bank to enable the customer to borrow money from the bank but allow it to be paid later. It helps to make basic transactions  which are reflected on the bill. The cardholder promises to pay the amount and the other charges.These cards carry high interest charges. There are various types of credit cards:

1) Business credit cards- these cards are specifically designed for business use.Hence business expenses can be kept separate from personal expenses.

2) Balance transfer credit cards- in this the user can transfer their credit card balance into a new card with lower interest rate to save money on interest

3) Rewards credit card- these cards provide reward on credit card purchases. The different types of reward cards are cash back reward, travel rewards, gas rewards and Retail rewards credit card etc

4) Student credit card- these cards are provided to students so that it helps them to build credit history from the ground up. Normally the credit limit is small

5) Secured credit card- for these cards, a security deposit is needed to secure the credit card. It requires collateral and the security deposit should be equal or greater than the credit amount

in this question , RBC westjet MasterCard credit card is a type of Reward credit card offered by RBC Royal Bank . It is also a retail card which provides various travel packages to the cardholders and rewards the points .