Which of the following best describes a credit card?

A credit card is best described as a card that allows borrowing against a credit limit. This means that when you use a credit card, you are essentially borrowing money from the credit card issuer up to a certain limit that has been set based on your creditworthiness. Each time you make a purchase with the card, you incur a debt that needs to be repaid, usually within a specified billing cycle to avoid interest charges.

The key feature of a credit card is the ability to purchase items now and pay for them later, provided that you stay within your predetermined limit. This allows consumers the flexibility to manage their cash flow and make larger purchases without having to pay upfront. The balance must be paid off over time, and if not, interest will be charged, making it important for cardholders to understand their repayment options and financial responsibilities.