A credit card is issued by a credit card provider, like Capital One, and they are designed to pay for
things in shops or online. You can also use credit cards for balance transfers
and taking out cash (also known as cash advance
or cash withdrawal) from an ATM.
You can use your credit card worldwide as they are accepted in millions of places at home and abroad, so they are very handy in any language. There
are often fees or charges for using your credit card overseas, so check you credit card agreement before you go.
When you get a credit card you will be given a credit limit. This is the total amount you have available to spend using the credit card. You should
always leave some available credit on your credit card for any interest to be applied.
Details of all transactions you make will be shown on your statement, along with:
- the minimum amount you must pay
- the date by which your credit card provider must receive at least your minimum payment
If you do not pay off your balance in full each month, you will be charged interest on the amount remaining on your account. Check your credit
card agreement to make sure you know how much you will be charged.
How is a Debit Card different to a Credit Card?