Credit cards are a widely used financial tool that allows users to borrow money up to a certain limit to make purchases or withdraw cash, which they must repay later. Here are key details about credit cards:

1. How They Work

• Borrowing Limit: When you get a credit card, the issuer gives you a credit limit, which is the maximum amount you can borrow. This limit depends on factors like your credit score, income, and the card type.
• Purchasing Power: You can use the card to make purchases anywhere that accepts your card network (Visa, MasterCard, etc.).
• Repayment: The balance you borrow must be repaid monthly. If you don't pay the full amount, interest is charged on the remaining balance.
• Interest Rates: Credit cards typically have high-interest rates, ranging from 15% to 25% APR, depending on the card and your credit score.