Credit Card

A Credit Card is a type of payment card issued by a financial institution (generally a bank) that enables cardholders to borrow funds to finance purchases of goods and services.

Credit cards accrue interest and are chiefly used for short-term financing. Interest typically begins to accrue one month after a purchase is made. Borrowing limits are pre-determined based on the individual’s credit rating.

Additionally, credit cards often offer rewards programs, such as travel points or cash back, as a means to incentivize spending.