Mint Money Knowledge Center: What is a credit card?

Good financial planning means taking all of the possible contingencies into account and avoiding debt at all costs. One type of debt that people try to avoid is credit card debt, but credit cards tend to be misunderstood by just about everyone.

What is a credit card


What Is A Credit Card?

A credit card is a plastic card that represents a spending account you have with a financial institution. The credit account comes with a limit that indicates how much you can spend. According to, as long as you pay back your purchases within the account billing cycle, then you will never owe any more money to your lender. But if you allow your balance to go past the billing cycle due date, then you will have to pay interest and fees on your purchase.

Credit Cards Are Not All Bad

There is a lot of information out there on how to avoid credit cards, but it is important to remember that credit cards have some positive uses to go along with the problem of revolving debt. According to, important activities such as developing a good credit score and promoting safety by not making it necessary to carry large amounts of cash around are just some of the positive functions of a credit card.

You can keep your monthly finances under control and avoid credit card debt when you sign up for Use the resources at to control your spending and prevent credit card debt from ruining your finances.

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