Credit cards are a convenient way to pay for goods and services without having to carry around cash. Credit card companies offer various plans where consumers are advanced credit up to a certain limit to pay for items.
The user is then billed at the end of the month for all the transactions that took place. In this sense it is different from a debit card, which takes money directly from your account, with no loan taking place.
If the debt is paid off immediately and in full, there is usually no interest charged.
Credit cards can therefore be the cheapest way of availing of credit, if used correctly and responsibly.
