What is Credit Card?

A credit card is a payment card that allows you to borrow money from a bank or financial institution up to a certain credit limit, to make purchases or withdraw cash. When you use a credit card to make a purchase, you are essentially taking out a loan, and you are required to pay back the borrowed amount plus interest charges within a specific timeframe, usually a month. If you don’t pay off the balance in full by the due date, you may incur interest charges and other fees. Credit cards offer several benefits such as convenience, rewards programs, and building credit history, but they can also be a source of debt if not used responsibly.