For those of you new to the credit card world, a credit card is a plastic card issued by a financial institution. Each card has a revolving line of credit that you can access any time to make purchases, until you reach your credit limit . Americans appreciate the convenience of credit cards and tend to use them liberally. In addition, credit cards are much safer to carry than cash. If you lose your cash, it is probably gone forever.
Credit cards can provide an extra source of money to use for unexpected expenses.
Some cards offer bonuses like frequent-flier miles, cash back, warranties or rental car insurance when you use them to charge those purchases or services, so in many cases paying with a credit card has benefits over paying with cash. Not all credit cards are created equal. The credit card terms vary widely from bank to bank, and even from one type of card to another provided by a same credit card issuer. These distinctions can make a big difference on how much you pay for the privilege of borrowing. The APR is the annual interest rate your card issuer charges you for the money you borrow on your credit card.