Understanding and Using Credit Cards
Understanding and Using Credit Cards Credit card A credit card is a type of financial tool that allows individuals to borrow money from a lender in order to make purchases or withdraw cash. Credit cards are issued by banks, credit unions, and other financial institutions and can be used to make purchases at millions of merchants worldwide. When an individual applies for a credit card, they are typically required to provide personal information such as their name, address, and income. This information is used by the lender to determine the individual's creditworthiness and to set the credit limit and interest rate for the card. Once approved for a credit card, the individual can use it to make purchases or withdraw cash at ATMs. The lender will then bill the individual for the amount borrowed, plus interest and any fees, at the end of the billing cycle. Advantages One of the main advantages of using a credit card is the ability to make purchases on credit. This allows individual