How Credit Cards Really Work

Credit cards are basically short term loans you take every time you swipe. When you buy something,

the bank pays the merchant for you. Then you have until your billing cycle ends to pay it back.

Here's the catch. Pay the full balance on time and you owe nothing extra. But carry a balance

and interest kicks in, sometimes over twenty percent annually. That's how banks

make billions. Your credit limit isn't free money, it's borrowed money with consequences.

Understanding this difference changes how you spend. The smartest move is treating your

credit card like a debit card. Only spend what you already have.