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Credit cards explained: why they aren’t free money

Getting your first credit card can feel like “free money”

But credit isn’t free. A credit card lets you spend the bank’s money, not your own.

Every purchase is borrowed money, and you have to pay it back — on time, every time — to avoid interest, fees, and damage to your credit score.

Why this matters when you’re starting out

Using a credit card responsibly can help build your credit history. But missing payments or spending more than you can repay can cause problems that follow you for years.

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