A credit card is typically a physical and plastic card that authorizes the delivery of goods and services in exchange for future payment with interest, according to a specific schedule.
A credit card is a form of credit offered by banks, credit unions, or financing companies and used by consumers to make purchases. Credit cards are accepted by many retailers and businesses as a form of payment. Credit cards are issued with a credit limit enabling you to make purchases up to the limit.
When a credit card is used to make a purchase, you’ll receive a monthly statement with a minimum payment and due date. If you do not pay the entire balance in full, you’ll begin to accrue interest with the remaining unpaid balance.
There are varying benefits to credit cards such as purchase protection, warranty extensions, and rewards accrual. The pitfall of credit cards is the potential debt carried from month-to-month costing a cardholder thousands in interest payments. Know your credit card terms, rates and penalties. Read the fine print.