Credit Card – Obtaining Goods or Services on Credit

Buy now, pay later: Goods, money, or services are given to you in exchange for the promise to pay at a future date. No money changes hands but you are billed monthly, because at the end of the day, money drawn would not have been drawn directly from your checking account, until the cost is paid. Monthly payments include the full cost of the commodity which would have been bought immediately on the basis of deferred payment plus interest.