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Credit cards are useful tools for consumers and can help spenders earn money and rewards on their everyday purchases.
Credit Cards 101
What is a Credit Card?
A credit card is issued by a bank or institution and is a tool that allows consumers to take out loans to in order make payments. At the end of a month (or time period), the consumer then must pay back the loan in full or pay interest on any delayed payments. The benefit of credit cards is that they typically offer rewards (i.e. 1% cash back) to consumers who use their cards.
How Does a Credit Card Work?
Simply stated, a credit card allows you to make purchases throughout a time period (usually a month) without actually paying for anything until the end of the time period (up to your allowable credit limit).
One of the easiest ways to understand credit cards is to compare them to debit cards. With debit cards, you instantly pay (with money coming out of a checking account) as you make a purchase. With credit cards, you delay having to pay until the end of the time period.
Learn more about credit cards, including which are the best no annual fee and annual fee cards, using the links below.
Best Credit Cards
Learn about the best no annual fee credit cards available.
Learn about the best annual fee credit cards available.
Discover the best credit card for you and earn more money based on your spending habits.
Learn More
Learn about the various types of credit cards that are available.
