What is a credit card?

A credit card is a financial instrument issued by banks that provides a revolving line of credit. It allows you to borrow funds up to a pre-approved limit to pay for goods and services or withdraw cash. Unlike a debit card, the money is borrowed from the issuer and must be repaid by a specific due date. If the full balance is not cleared, interest and fees are applied. It is a useful tool for building a credit score when managed responsibly.