What is the primary function of a credit card compared to a debit card?

The primary function of a credit card is to offer a line of credit, which allows the cardholder to borrow money up to a certain limit to make purchases or withdraw cash. This credit is not drawn from the cardholder's personal funds but rather represents a loan from the credit card issuer. Cardholders are expected to pay back the borrowed amount, often with interest, if it is not repaid by the due date.

This line of credit enables consumers to make larger purchases or manage their cash flow without immediately impacting their bank accounts. Unlike debit cards, which draw money directly from a linked checking or savings account, credit cards allow for deferred payment, making them a financial tool for both everyday purchases and larger expenses without requiring upfront funds from the user’s personal account.