creditCard

A credit card is a payment card issued by a financial institution that allows the holder to borrow funds to pay for goods and services up to a specified credit limit. When a purchase is made, the issuer covers the cost and records the transaction on an account that may be paid in full each cycle or carried with interest. The cardholder's activity influences their credit history and, in many jurisdictions, their credit score.

Each card has a credit limit and may offer a grace period during which new purchases do not incur interest if the balance is paid in full by the due date. If balances are carried, interest accrues at an annual percentage rate (APR). Billing statements are issued monthly, showing transactions, fees, and the minimum payment due. Common charges include annual fees, late payment fees, cash advances, and foreign transaction fees. Consumers can also perform balance transfers or request additional cards.

Card types include standard, secured, student, and business cards. Many cards offer rewards such as points, miles, or cash back, often with caps or category limitations. Features may include introductory offers, balance transfers, and variable or fixed APRs. Payment security features include EMV chipped cards, dynamic CVV, tokenization, and PINs to reduce fraud.

Using a credit card can aid convenience and help build credit, but carries risk of debt and fees. Responsible use generally entails paying on time, keeping utilization moderate, and reviewing statements for errors. If the card is lost or stolen, liability policies and contact procedures typically limit unauthorized use. Regulations in many countries require clear disclosures of terms, interest rates, and fees.