This is an accepted form of payment for many goods. however, it is actually a type of loan issued by the financial institution to an individual for use in the purchase of a good or service, but with additional interest payments included that the borrower must pay back.

This is an accepted form of payment for many goods. However, it is actually a type of loan issued by the financial institution to an individual for use in the purchase of a good or service, but with additional interest payments included that the borrower must pay back.

Explanation:

A credit card is a plastic card issued by a financial company and allows its owner the option to borrow money from the issuer.

This allows credit card holders to pay for products or services without having cash or a check. (Credit cards = short-term financing).

Credit card holders have the ability to borrow a certain amount of money from the credit card issuer; normally a financial entity such as a bank, to be paid within the next 30 days without interest.

The majority of all credit card issuers charge a high interest if the holder does not pay the loan in the stipulated time, at the end of the month normally.