Answer to Question #209131 in Accounting for Milan

Question

How does a credit card work?

What happens if there is no money left in your credit card?

How do add more money in my credit card?

Can you provide me how the mechanics on how a credit card works? Thank you.

Answer 1

Credit cards provide you with a line of credit that you can use for purchases, debt transfers, and/or cash advances, with the requirement that you repay the loan amount over time.

If you don't pay your credit card account on time, you'll be charged late penalties, your interest rate will rise, and your credit score will suffer.

Credit cards provide you with a line of credit that you can use for purchases, debt transfers, and/or cash advances, with the requirement that you repay the loan amount over time.