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Credit cards are like a loan which is extended to you by the issuer under certain terms and interest determined by your creditworthiness. You can avoid paying the interest if you pay off the entire balance by the due date every month. The credit line extended is also determined by the credit card issuer and depends on applicant’s creditworthiness. Also, cards may have an annual fee or a monthly maintenance fee.
Credit cards can be used everywhere they are accepted online and in stores. Also, sometimes you can pay bills with your credit cards. Most issuers report credit activity to the major credit bureaus. That means you will be able to build your credit history by making payments on time and staying within credit limits.