credit card
A credit card allows you to charge purchases to a credit account at a financial institution. People use credit cards for various purposes, but mostly they’re a convenient way to purchase goods and services without having to pay cash or write checks — most of them work the same way, but be sure not to confuse credit cards with charge cards. Unlike charge cards, credit cards let you carry unpaid balances forward, though of course you’ll be charged interest on that balance. When choosing a credit card it’s important to understand the annual percentage rate (APR) because it greatly affects how much you’ll pay.
Credit cards are extremely convenient, but they also cause problems for some people. Proponents of debt-free living avoid them at all costs!
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