A payment card allowing you to borrow money from a card issuer, repaid monthly.
A credit card is a payment card that allows you to borrow money from the card issuer (typically a bank or credit card company) to make purchases. You receive a monthly statement and must pay at least the minimum due; unpaid balances accrue interest at the card's APR. Credit cards offer convenience, purchase protection, fraud protection, and rewards. However, high interest rates (often 18–25% APR) make credit card debt very expensive. Using credit cards responsibly (paying full balances monthly, avoiding overspending) builds credit history. Carrying a balance and making only minimum payments is expensive and can lead to debt spirals.