But without a guarantee and now have a credit card to purchase goods or services fully, including cash advances. What will happen when it's time to pay. It takes money to pay income or payroll. And now do not have to pay the whole amount. But will pay a minimum of 5 percent or so that is why credit card debt as well as numerous. If you default on payments It will incur interest at a much higher rate. Credit card is a type of loan.