A credit card is a financial tool issued by banks or other financial institutions that allows users to make purchases or withdraw cash on credit. This means the cardholder borrows money up to a certain limit and repays it later, either in full by the due date or over time with interest. Credit cards are widely accepted and offer benefits such as convenience, security, reward points, and emergency funds. However, they require responsible use, as missed payments or overspending can lead to high-interest debt and affect credit scores.