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Credit Card
A payment card that allows the cardholder to borrow funds from the issuer to pay for purchases or withdraw cash.
More Details
A credit card is a type of financial product that allows you to borrow money from a lender in order to make purchases or withdraw cash. When someone uses a credit card, they are given a certain amount of credit, which is essentially a loan that they can use to make purchases or withdraw cash up to a certain limit.
Example
If you want to buy $60 worth of groceries but only have $10 on hand, you can use your credit card to pay for the purchase. This total will be paid back to the credit card company later when you pay your bill.
Related Terms
Previous Balance
The unpaid balance on a credit card or loan from the previous billing period.
Service Charge
A fee charged by a credit issuer or financial institution for processing transactions, usually added onto the total cost paid by a customer.
APY
APY, or annual percentage yield, is the rate of dividends earned on a credit union account over a year, taking into account the effect of compounding.

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