What provides a line of credit from a lending institution which can be accessed with a card?

A credit card provides a line of credit from a lending institution that can be accessed with a card. This credit line allows the cardholder to make purchases up to a certain limit and to pay off these purchases over time, typically with interest. The flexibility that comes with a credit card is a key feature, as it enables consumers to borrow funds up to their credit limit and pay for goods and services without having to have the full amount of cash available at the time of purchase.

This is different from a debit card, which is directly linked to a checking account and only allows spending of the available balance in that account. Loans and mortgages, while also forms of credit, are not accessed with a card and are typically used for specific purposes like purchasing a home or obtaining a large sum of cash, rather than for everyday purchases. Thus, the credit card is uniquely suited for casual spending and ongoing credit access.