What is the primary function of a credit card?

The primary function of a credit card is to offer a line of credit for purchases. This means that users can borrow money up to a certain limit to pay for goods and services when they may not have immediate cash available. The ability to make purchases on credit allows consumers to manage their cash flow, handle emergencies, and make larger purchases that they may not be able to afford upfront.

While credit cards can provide instant cash through cash advances, the main feature that defines a credit card is its role in facilitating purchases rather than providing cash directly. Encouraging saving and accumulating interest are not inherent functions of credit cards; rather, saving money is typically associated with savings accounts and accumulating interest is a result of borrowing costs associated with carrying a balance on a credit card rather than its primary purpose.