A credit card allows you to spend money up to a pre-set limit. You’ll get a bill for what you’ve spent each month.
It‘s important to try to pay off the balance in full every month. But you’ll need to pay off at least the minimum amount. The minimum is set by your credit card provider, but must be at least 1% of the outstanding balance, plus interest, any default charges and the annual fee (if there is one). Most of the time it will be between 3 and 5%. It might also be set as a pound figure of at least £5.
If you pay off the bill in full, you won’t pay any interest on what you’ve borrowed unless you've used your credit card to withdraw cash. If you don’t pay off the bill in full, you’ll be charged interest. Interest is usually backdated to the date of your purchase.
If you’re worried about forgetting to pay, you can set up a Direct Debit. This is if you can rely on enough money coming into your bank account on the same date each month. This will mean you don’t miss a payment.