Credit Card

What is a credit card and how do I use it?

A credit card is a payment instrument that must be managed at a financial institution or a credit card issuing company and will be granted to the applicant if they meet the requirements.

The entity will provide you with an amount of credit for which you can operate and will be related to the applicant’s income. Unlike the debit card, the funds to be used must not be previously deposited, but as it is used to withdraw cash or make payments, a debt will automatically be generated. Generally, this debt must be paid monthly, for which the entity sends a summary with all the transactions made, the due date and the amount owed.

This amount can be paid in whole or in part and the outstanding debt will accrue interest. An advantage that credit cards provide is the possibility of paying for purchases in installments (installments).