Return to Glossary

A Credit Card is a type of payment card in which charges are made against a line of credit instead of the account holder’s cash deposits. When someone uses a credit card to make a purchase, that person’s account accrues a balance that must be paid off each month. Although failure to pay off the credit card on time could result in interest charges and late fees, credit cards can also help users build a positive credit history.

Source: https://www.bankrate.com/glossary/c/credit-card/