What "credit card" means in finance

A credit card is a type of payment card issued to consumers by financial institutions or credit card companies. It allows cardholders to borrow money and make purchases on credit, which must be paid back with interest over time. Credit cards can be used to make purchases both in-store and online, as well as for cash advances and balance transfers. They typically come with a credit limit, which is the maximum amount of credit that a cardholder can access. Credit cards also often offer various rewards and benefits, such as cash back, points, and travel rewards, to incentivize spending and card usage.