• A credit card is a plastic card issued by a financial institution that allows cardholders to borrow money up to a certain limit to make purchases or withdraw cash. The borrowed amount must be repaid with interest, typically on a monthly basis.

• Credit cards work by allowing cardholders to make purchases or obtain cash advances with a line of credit provided by the card issuer. Cardholders are billed for these transactions on a monthly statement and are required to make at least a minimum payment by the due date.

• A credit card allows you to borrow money up to a credit limit, while a debit card is linked to your bank account and allows you to spend your own money. Debit card transactions do not accrue interest, whereas credit card transactions do if not paid in full.

You can apply for a credit card by filling out an application provided by a bank, credit union, or online card issuer. The application typically requires personal and financial information.

Eligibility for a credit card is influenced by your credit score, income, employment status, and credit history. Lenders use this information to assess your ability to repay debt.