Browsing: credit card

A credit card is a financial tool that allows individuals to borrow money from a bank or financial institution to make purchases, up to a predetermined limit. Unlike debit cards, which draw funds directly from a bank account, credit cards offer a line of credit that can be used to pay for goods and services. Cardholders are required to repay the borrowed amount, either in full or through monthly installments, often with interest if the balance is not paid off in time. Credit cards also come with additional features, such as rewards, cash back, and travel benefits. Responsible use of a credit card can help build a strong credit history, while misuse or late payments can lead to high interest charges and damage to credit scores.