Credit Card
A revolving line of credit allowing cardholders to make purchases up to a limit.
Detailed Description
Credit Card
What is a credit card?
A credit card is a financial tool that allows cardholders to borrow funds to pay for goods and services, which must be repaid with interest.
What are the different types of credit cards?
Types include standard, rewards, secured, business, student, and balance transfer credit cards.
How do interest rates on credit cards work?
Interest rates are expressed as an Annual Percentage Rate (APR) and can vary based on card type and borrower risk.
What is a credit limit?
The credit limit is the maximum amount a cardholder can borrow, determined by factors like credit score and income.
What fees are commonly associated with credit cards?
Common fees include annual fees, late payment fees, foreign transaction fees, cash advance fees, and balance transfer fees.