credit cards

A credit card is a plastic card issued by financial institutions that allows the cardholder to borrow funds to pay for goods and services, with the agreement to pay back the borrowed amount plus any applicable interest.

By charging late fees and interest to their customers.

Only for small purchases.

A credit limit is the maximum amount of credit that a financial institution extends to a borrower on a credit card.

No need for carrying cash.

High interest rates can lead to significant debt if not managed properly.

It means to be mindful of spending and to ensure that you can pay back the borrowed amount to avoid debt.

A late fee is a charge imposed by a credit card issuer when a payment is not made by the due date.

Interest is the cost of borrowing money on a credit card, typically expressed as an annual percentage rate (APR).

A credit score is a numerical representation of a person's creditworthiness, used by lenders to assess the risk of lending money.