December 25, 2022 5:53 AM EST
Finance and credit cards are two different financial tools that serve different purposes. Here are the main differences between them:
Purpose: Finance refers to the management, creation, and study of money, investments, and other financial instruments. A credit card is a financial product that allows a user to borrow money from a lender in order to make purchases or withdraw cash.
Interest: Finance typically involves the use of interest, which is a fee charged by a lender for borrowing money. Credit cards also charge interest, but it is generally higher than the interest rates charged on other types of loans.
Repayment: Finance can involve a variety of repayment terms, depending on the type of financial product being used. Credit card repayment typically involves making monthly payments to the lender, which include both the principal (the amount borrowed) and the interest.
Credit score: Credit cards can have an impact on a person's credit score, which is a numerical representation of their creditworthiness. A good credit score can make it easier to obtain loans and other financial products, while a poor credit score can make it more difficult. Finance, on the other hand, does not directly affect a person's credit score.
Overall, finance refers to the management and study of money and investments, while a credit card is a financial product used to borrow money for purchases or cash advances