1. Issuers: Credit cards are typically issued by banks, credit unions, or other financial institutions. These issuers determine the credit limit (the maximum amount you can borrow) based on factors such as your credit history, income, and repayment ability.

2. Credit Limit: The credit limit is the maximum amount you can charge on your credit card. It is determined by the issuer and can vary from person to person. It’s important to manage your credit card spending within this limit to avoid overlimit fees or potential negative impacts on your credit score.

3. Revolving Credit: Credit cards offer a form of revolving credit, which means that you can borrow up to your credit limit and repay the borrowed amount over time. As you pay off your balance, the available credit is replenished, allowing you to make additional purchases.

4. Interest Charges: If you carry a balance on your credit card, interest charges will apply. The interest rate, also known as the annual percentage rate (APR), varies depending on the credit card issuer and your creditworthiness. It’s important to understand the interest rate and consider paying off your balance in full each month to avoid accruing interest charges.

5. Minimum Payments: Credit card issuers require you to make a minimum payment each month, which is usually a percentage of your outstanding balance. While making the minimum payment is necessary to keep your account in good standing, it’s advisable to pay more than the minimum to reduce interest charges and pay off your debt faster.

6. Rewards and Perks: Many credit cards offer rewards programs or perks, such as cashback, travel rewards, points, or discounts. These incentives can be earned based on your spending and can provide additional value when using your credit card. It’s important to review the terms and conditions of the rewards program to understand how they work and any associated fees.

7. Fees: Credit cards may come with various fees, such as annual fees, foreign transaction fees, balance transfer fees, or late payment fees. It’s important to review the card’s terms and conditions to understand the fees involved and consider whether the benefits outweigh the costs.

8. Credit Score Impact: Your credit card usage and payment history can impact your credit score. Consistently paying your credit card bills on time and keeping your credit utilization ratio (the percentage of available credit you are using) low can help build a positive credit history and improve your credit score.

It’s important to use credit cards responsibly by making payments on time, managing your credit utilization, and avoiding excessive debt. It’s also recommended to review and compare different credit card options to find one that suits your needs, offers favorable terms, and aligns with your financial goals.