Credit cards are plastic cards that enable you to borrow money from your bank to buy things.
Let’s see the money flow.
You directly get bread from the shop.
With a credit card, the shop charges the bank, not you.
Then, you will pay the amount of money you borrowed to the bank.
This means Credit card companies are responsible for the money and that is why the shop accepts the customer’s credit card.
As long as you repay the amount of money you borrowed to the bank within a certain period, you don’t have to pay extra.
If you are late, you will pay high interests.
By the way, how do credit card companies make money?
Let’s check on the next page..