A credit card is a payment card that allows you to borrow money to make purchases . When you use a credit card, you’re essentially taking out a loan from the bank or financial institution that issued the card. You can then pay off the balance in full each month or carry it over to the next month, in which case you’ll be charged interest.
Key features of credit cards:
Rewards: Many credit cards offer rewards programs, such as cash back, points, or miles.
Credit limit: The maximum amount you can borrow on your card.
Interest rate: The annual percentage rate (APR) you’ll pay on any unpaid balance.
Billing cycle: The period of time between when you receive your credit card statement and when the payment is due.