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Credit cards explained: why they aren’t free money

Credit isn’t actually free

A credit card lets you spend the bank’s money, not your own. Every purchase is borrowed money that must be paid back — on time, every time.

What happens if you don’t pay it back properly?

Missed or late payments can lead to interest charges, fees, and damage to your credit score. This can make it harder to rent a home, get a phone contract, or apply for a mortgage later on.

Why this matters when you’re starting out

Using a credit card responsibly can help build your credit history, but mistakes early on can follow you for years. Understanding how credit works before you spend helps you stay in control.

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