A credit card is a type of financial card, similar to a debit card that helps you make any purchase, subject to your credit limit.

A credit card differs from a debit in the sense that in a debit card, your money gets debited, or deducted, from your savings account. However, a credit card is more like a short-term loan you take from the bank for allowing you to purchase a product. Depending on when you pay off the bank, you may or may not have to pay interest over this short-term loan.