A credit card is a small plastic card that is associated with you. It looks very similar to a debit card but it works in a different way. Whilst a debit card is associated with your bank account and lets you pay for things using that money, and draw the money out of your account when you wish, a credit card represents money that has been loaned to you.
Credit cards come with credit limits: this is the maximum amount of money that has been loaned to you by the bank or the credit card company.
Credit cards also accrue interest on all of your purchases. As soon as you use some of your credit to make a purchase, you will start accruing interest on that purchase.
When you first get a credit card, you can feel as if you are being given free money. But, you have to pay back all of the money that you use from your credit limit back at a later date – plus interest. This is why credit cards must be used very wisely, and it is best not to use them at all.