A credit card is a plastic (sometimes metal) card you can use to pay for everyday expenses. Typically, financial institutions, like banks and credit unions, issue credit cards. Credit cards enable you to borrow money — up to a set limit — and, if the balance of the money borrowed isn't paid in full each month, that balance accrues interest.
Credit cards give consumers a convenient way to make everyday purchases and build credit, so long as they spend responsibly and pay their statement balance or the minimum required payment on time each month. However, when consumers engage in reckless spending or accrue significant interest on overdue balances, credit card use can lead to financial disaster.
