A credit card is used for making purchases, doing payments, or withdrawing cash, depending on the card. A credit card can be thought of as a short-term loan in its simplest form. Your credit card issuer assigns you a credit limit when you open an account with them. It is the amount of money that your credit card provider will let you spend or pay bills with. Let's look at why your credit card is the best option, as well as some credit card uses and techniques.