What Is a Credit Card?
A credit card is a card that allows you to borrow money against a line of credit, otherwise known as the card’s credit limit. You use the card to make basic transactions, which are then reflected on your bill.
Worth noting: you are charged interest on your purchases, though there is no interest charged if you do not carry your balance over from month to month. Credit cards have high interest rates, and your credit card balance and payment history can affect your credit score. Below are other facts about credit cards:
- A credit card is a line of credit you can access with your card.
- Generally, you must sign on these purchases (exceptions may be at the gas pump or for small amounts at a drive-through window).
- You will pay interest on the purchases made if not paid off in 30 days.