Credit cards allow you to borrow money up to a certain limit as long as you make regular minimum repayments. Most have an annual fee (some don’t, like those offered with a home loan).
Credit cards usually have the highest usage and interest rate of any debt type. Interest is charged on all outstanding transactions if you don’t repay the amount you owe (the balance) each month or within an interest-free period.
Interest is usually calculated on the balance owing on your account each day and is charged once per month.
Tip: making extra repayments within the month reduces the amount of interest charged (which is calculated daily)