What does a credit card typically allow you to do?

A credit card typically allows you to make purchases and pay back the amount later. This is because a credit card provides a line of credit from the issuer, enabling you to spend money up to your credit limit without having the funds available in your bank account at the time of the purchase. The understanding of this arrangement is crucial for financial planning, as it involves borrowing money that is expected to be paid back within a certain timeframe, often with the possibility of incurring interest on any unpaid balance.

While there are options that might seem plausible, they do not accurately reflect the primary function of a credit card. For instance, withdrawing cash from ATMs is possible but generally comes with high fees and interest rates, which is not the main feature of a credit card. Accessing funds without any fees is not typically true, as there are usually associated costs and interest charges involved in credit card transactions. Buying only items that are on sale is not a limitation of credit cards; they can be used for a wide range of purchases, regardless of whether items are on sale or not. Therefore, the key function of credit cards is to allow for deferred payment on purchases, making option C the most accurate representation of their primary purpose.