Credit Card

money · banking · payment

Borrowed Money. When you use a credit card, you're borrowing money from a bank to buy something. You promise to pay that money back later, usually within a month.

Interest Costs. If you don't pay back all the money you borrowed, the bank charges extra money called interest. This means you end up owing more than you originally spent.

Issued by Banks. Banks create and give out credit cards to people who promise they can pay back what they borrow. The bank trusts you to be responsible with the card.

Super Popular. Credit cards are one of the most common ways people pay for things around the world. Millions of people use them every single day instead of carrying cash.

Buy or Withdraw. Besides buying things in stores and online, you can also use a credit card to get cash from special machines called ATMs, though this usually costs extra money.