A credit card is a small plastic card issued by banks or financial institutions that allows you to borrow money to make purchases. When you use a credit card, you are essentially taking a loan from the bank, which you must pay back later. This can be convenient for buying things you need right away, even if you don’t have enough cash on hand. Credit cards come with a limit, which is the maximum amount you can borrow. They also often offer rewards, such as cash back or points for travel, making them appealing for many consumers. However, it’s important to pay off your balance on time to avoid high interest rates.