Credit Card

A credit card is a payment card that lets a person borrow money to make purchases. In simple terms, a credit card lets you buy now and pay later. Credit cards are important because they can make payments convenient, help build credit history, and provide short-term flexibility. But if the balance is not paid in full, the cardholder may have to pay interest. For example, if you use a credit card to buy $200 worth of groceries, the credit card company pays the store first, and you repay the credit card company later. A credit card is not the same as a debit card. A debit card uses money from your bank account, while a credit card uses borrowed money that must be repaid.