Personal Finance

Q&A: What is a credit card?

A credit card is a plastic rectangle that allows someone to make purchases using borrowed money. The money will have to be paid back over time and to ensure this, the company that issued the credit card sets limits on how much you can borrow and requires that minimum payments be made monthly on the balance.

Pro Tip: Due to the high interest (15-30% annually) on credit cards, try your best to pay the balance off each month before interest is charged.

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