What is the main purpose of a credit card?

The main purpose of a credit card is to allow consumers to borrow funds for purchases with the agreement to pay it back later. This functionality enables individuals to make purchases without needing to have the cash available at the moment of the transaction. When using a credit card, consumers can manage their cash flow by borrowing money from the credit card issuer, which is then expected to be repaid, often with interest, within a specified billing cycle. This system provides flexibility in spending, as it allows users to buy goods and services even when they may not have immediate cash on hand, thereby facilitating a broader range of financial transactions and opportunities.

Other options, such as earning interest on savings, providing instant cash for personal loans, or offering discounts on purchases, do not align with the primary function of a credit card. Instead, these activities pertain to different financial products or services that serve distinct purposes beyond the core borrowing feature of credit cards.