What a credit card actually is
A credit card lets you borrow up to a set limit and repay monthly. Clear the full balance and you usually pay no interest on purchases; carry it over and interest applies.
How interest is charged
Interest is quoted as an APR. If you pay in full by the due date each month you typically avoid it entirely on purchases — the cheapest way to use a card.
Using one well
- Pay in full each month to dodge interest.
- Never miss the minimum payment — it dents your credit score.
- Watch fees on cash withdrawals and foreign spending.
Frequently asked questions
Does paying in full build my credit?+
Yes — on-time, in-full payments are among the strongest positive signals on your file.
What is a representative APR?+
The rate at least 51% of accepted applicants receive. Yours could differ based on your circumstances.