Definition
A card that lets you borrow money up to a certain limit to make purchases. Just remember to pay it off to avoid interest charges.
What to consider
- Always pay your balance in full to avoid interest charges.
- Monitor your spending to keep your credit healthy.
- Choose a card that offers rewards or perks that match your lifestyle.
Real world scenarios
- Dana uses her rewards credit card for groceries, paying off the balance monthly to avoid interest. The points she earns help cover occasional flights.
- Jake sets a spending alert on his card to ensure he never exceeds his budget. This vigilance prevents him from falling into costly debt.
- Adopting responsible habits, Priya reviews her statement for errors and unfamiliar transactions, safeguarding her account from fraud.
Related terms
Related Playbooks
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