What Is a Credit Card? A credit card is a small plastic or metal card that lets you borrow money to buy things. Instead of using cash, you use the card to make purchases, and then you pay the money back later. Credit cards are offered by banks and financial companies. mahai How Does a Credit Card Work? When you use a credit card, the bank pays the store for you. Then, the bank sends you a bill (called a credit card statement ) every month. You can choose to pay the full amount or just a part of it. If you don’t pay the full amount, the bank charges you interest , which is extra money added to your bill. This can make your debt grow quickly, so it's best to pay off your balance every month if you can. Benefits of a Credit Card Convenience – You don’t need to carry cash. Build Credit – Using a credit card responsibly helps you build a credit score , which is important for loans, renting a home, or even getting a job. Rewards – Many credit cards give rewards li...
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What Is a Credit Card? A credit card is a small plastic or metal card that lets you borrow money to buy things. Instead of using cash, you use the card to make purchases, and then you pay the money back later. Credit cards are offered by banks and financial companies. mahai How Does a Credit Card Work? When you use a credit card, the bank pays the store for you. Then, the bank sends you a bill (called a credit card statement ) every month. You can choose to pay the full amount or just a part of it. If you don’t pay the full amount, the bank charges you interest , which is extra money added to your bill. This can make your debt grow quickly, so it's best to pay off your balance every month if you can. Benefits of a Credit Card Convenience – You don’t need to carry cash. Build Credit – Using a credit card responsibly helps you build a credit score , which is important for loans, renting a home, or even getting a job. Rewards – Many credit cards give rewards li...