Which characteristic is most commonly associated with credit cards?

The characteristic most commonly associated with credit cards is that they may come with high APR and fees for missed payments. This reflects the fundamental operation of credit cards as a borrowing tool. When you use a credit card, you are essentially borrowing money to make purchases, which means that you must pay that money back, often with interest. The annual percentage rate (APR) is the cost of borrowing expressed as a yearly interest rate and can be quite high, especially for those with lower credit scores. Additionally, credit cards often impose fees if a payment is missed, which can further increase the overall cost of borrowing. This combination of high APR and potential fees makes understanding these elements crucial for managing credit responsibly.

In contrast, credit cards may have a credit limit, are not always secured (with many being unsecured, meaning they do not require collateral), and they can be used for various types of purchases, both online and in person, rather than being limited exclusively to online shopping. These distinctions highlight the multifaceted nature of credit cards beyond just their interest rates and fees.