PoundWise Team: A credit card is a form of borrowing that lets you spend up to a set credit limit, rather than using money directly from your bank account. Each month, the card provider sends a statement showing what you owe and the minimum payment required. Paying the full statement balance by the due date will usually avoid interest on purchases, depending on the card’s terms; paying only the minimum can make the debt last much longer and cost more. Check the APR, fees and conditions before applying, and only borrow what you can repay.