A credit card is simply a representation of a line a credit, usually via a plastic ‘card’.
Credit cards are a mainstay when we talk about credit and building credit in the United States. Credit cards are fixed lines of credit (varies by account) with varying APR and fees. These accounts are created by a bank or credit union.
You borrow up to the available credit card limit to make purchases either in person or online. These cards, whether presented in person or online, use security features like a Card security code for verification, or the new “chip” (EMV) for verification and added security.
While not required, if you pay the credit card off in full each month, you will not be charged any interest. However, if you pay only a partial payment, interest rates will apply.