How are credit cards used?

Credit cards are used as a payment method that allows consumers to borrow funds from a credit limit to make purchases. When a cardholder uses a credit card, they agree to repay the borrowed amount, usually within a billing cycle, to avoid interest charges. Credit cards can also offer benefits like rewards, cash back, and travel perks, but they require responsible management to prevent debt accumulation. Additionally, they can be used for online transactions and to build a credit history.