Credit Cards
A credit card is a financial tool that allows you to borrow money from a bank or financial institution to make purchases. Instead of paying with cash, you can swipe your card, and the bank pays the merchant on your behalf. You then repay the bank, typically on a monthly basis. If you pay the full balance by the due date, you usually avoid interest charges. Credit cards can help build your credit history, which is important for loans, but if mismanaged, they can lead to debt due to high interest rates. Always use them responsibly.
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Credit cards are financial tools issued by banks or financial institutions that allow users to borrow money up to a certain limit for purchases or cash advances. When you use a credit card, you're effectively taking a loan that you agree to pay back, usually within a month. If you pay the full balance on time, you often incur no interest; otherwise, you’re charged interest on any outstanding amount. Credit cards also offer benefits like rewards points, cash back, and fraud protection, but they require responsible use to avoid debt and maintain a good credit score.