What is a credit card and how does it work?

It is a card that operates based on a credit limit granted by the bank, within which you can pay for purchases in stores or make transfers. Each month, after the end of the billing cycle, you will receive a statement summarizing all transactions. It will include the total amount owed and the required minimum payment.

You then have two options:

• Repay the full balance: If you pay the full amount from the statement on time, no interest will be charged on cashless transactions. This means you use the bank’s money at no extra cost.
• Repay part of the balance: If you do not want to repay the full amount, you only need to pay at least the minimum amount. In this case, the bank will charge interest on the transactions.