What is a credit card? How do they work?

A credit card is a payment card issued to a cardholder which allows the user to pay for goods and services based on the promise of future payment.

Cardholders can use credit cards to make purchases at the Point of Sale (restaurants, stores, etc.) or Online (e-commerce sites) and then repay their balance over time. Responsible credit usage is often displayed by repaying any outstanding balance in full at the end of the month; however, cardholders are able to “revolve” - defer payment until the next month while accruing any applicable interest and late payment fees.

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