# Credit Card

*Borrowing & Credit — Finicade finance glossary*

A revolving line of credit: spend now, repay later. Pay the full balance each month and it's free short-term borrowing; carry a balance and the APR — often 20%+ — compounds against you fast. The minimum payment is the trap, not the target.

**Related terms:** [APR (Annual Percentage Rate)](https://finicade.com/glossary/apr), [Minimum Payment](https://finicade.com/glossary/minimum-payment), [Credit Score](https://finicade.com/glossary/credit-score), [Compound Interest](https://finicade.com/glossary/compound-interest)

Source: https://finicade.com/glossary/credit-card