What are credit cards?

A credit card is something that is like a loan. People use their credit cards at stores and the credit card company automatically pays the store back. Then you basically pay the money back that you borrowed from the credit card company over a few months.

A credit card is a card that allows you to borrow money for paying your purchases, for a product or a service, with a set limit. The card may be used repeatedly, until the set limit is reached. At the end off every month, you have an option to repay the whole amount; or only a fraction of the whole amount you owe; even a minimum amount. Credit cards are issued by banks, savings and loans, retail stores, and other businesses.