When used responsibly, credit cards can be an easy-to-use payment method to build credit and a secure way to pay for purchases. Many credit cards also offer perks, cash-back bonuses, and redeemable reward points.
Credit cards are a form of revolving debt. Every month, users borrow against the credit card company’s credit limit.
Because of how convenient it is to use a credit card, it’s common to accrue debt. Many credit card companies charge high interest rates for late payments, so it’s important to pay your credit card balance in full every month.