A credit card allows you to make purchases using a pre-approved amount of credit. The card can be used to pay for goods and services in store, online or overseas.
The benefits
Credit cards are a widely accepted form of payment.
A credit card is safer than carrying large amounts of cash.
They can be useful in emergencies because you can use the card to take out cash (by cash advance) up to a pre-agreed credit limit.
Security
If a credit card is lost, stolen, or compromised, you can stop all further transactions on the card by contacting your card issuer (for example, your bank). Refunds for fraudulent transactions can also be obtained (refer to the issuer’s specific credit card terms and conditions for details).
Banks monitor customer credit card spending trends and transactions. If there are transactions on your card that appear 'unusual' your card issuer may contact you to check your usage to protect you (and them).