A credit card is a payment card that allows you to borrow money from a bank or financial institution to make purchases, pay bills, or withdraw cash. When you use a credit card to make a purchase, you are essentially taking out a loan, which you must repay to the bank or financial institution at a later time.
Credit cards typically have a credit limit, which is the maximum amount of money you can borrow at any given time. You can use the credit card up to this limit, but you must pay back the borrowed amount, plus any interest and fees, by the due date specified by the credit card issuer.
Credit cards also offer various rewards and benefits, such as cashback, airline miles, or points that can be redeemed for merchandise or travel. However, it is important to use credit cards responsibly and only borrow what you can afford to pay back, as carrying a balance can lead to high interest charges and potential debt.