A Dissertation Submitted to Mzumbe University –Dar –es-Salaam Campus College in partial / fulfillment of the Requirements for Award of the Degree of Master of Business Administration in Corporate Management of Mzumbe University.The study focused on the role of credit cards on retaining bank customers, conducted at National Microfinance Bank Plc Tanzania. The study has pointed out the historical background of the credit card and its emergency in relation to other modes on payment, and also has explained how much credit card has evolved from being a pure accounting function in a bank into a front-end customer facing function. One of the challenges facing backing industry in Tanzania is customer retaining and product innovations which this study has well covered and suggested the best ways in which customers can be retained while looking at the nature of the market as markets has varied challenges. Challenges of banks in retaining their customers by using credit cards, how to determine the relation between credit cards with customer retention, explanations on the strengths and weaknesses of credit cards in relations to customer retention has also been well covered, the number of customers linked to credit cards and reasons for non-retention has been well covered in this study. It has also discussed various things which emerged during interviews, the nature of the customers in the market, and how the credit cards work, its issuing procedure, the benefit to both insurer and the customer and their emerging issues especially the Tanzania market which is very informal. The study has recommended, establishing relationships with customers as a key factor to the success of a particular product in any banking business. This is because of human being nature of being connected to an individual whom they know and trust. The researcher really hopes that the output of this research shall be of practical use to the NATIONAL MICROFINANCE BANK Plc