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To get a credit card, you must sign a contract with
a bank or another lender, sometimes a store. The
credit card company promises to loan you a limited
amount of money when you use the card. In return,
you promise to pay back the amount you borrowed,
plus interest. Interest is what the credit card company charges you to borrow the money, and it can
add up fast.
While credit cards can be a one-way ticket to debt, if
used carefully, they can be a helpful tool. They can get
your car fixed in an emergency when you are away from
home, or they can help you buy something that you need
today but can't afford to pay cash for all at once. They
can also help you fight when you are not happy with the
product or service you purchased from a merchant.
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