What is a credit card?
A credit card allows a cardholder to purchase services or products on a line of credit.
Credit is provided by a financial company and acts as a placeholder for cash.
The cardholder signs a contract agreeing the balance placed on the card must be paid off each month.
Credit limits determine the amount of money that can be spent in each month and
interest rates are added to the payments if they are not fully paid after 30 days.