A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the other agreed charges).
What should you not use a credit card for?
- Your monthly rent or mortgage payment. ...
- A large purchase that will wipe out available credit. ...
- Taxes. ...
- Medical bills. ...
- A series of small impulse splurges.
What can you pay with credit card?
- Mortgage.
- Rent.
- Car payment.
- Car and home insurance.
- Health insurance.
- Taxes.
- Utilities, cellphone, internet, cable.
- Subscription services.
What are 2 bad things about credit cards?
- Interest charges. Perhaps the most obvious drawback of using a credit card is paying interest. ...
- Temptation to overspend. Credit cards make it easy to spend money — maybe too easy for some people. ...
- Late fees. ...
- Potential for credit damage.