← Money Words
Credit card
A card that lets you pay with money you haven’t got yet.
Three ways to explain it
Hatchlings · Ages 5–6
A card grown-ups use to buy things now and pay for them later.
Fledglings · Ages 7–8
A card that borrows money for you when you buy something. Pay it all back quickly and it costs nothing extra. Don’t, and you’re charged interest.
High Flyers · Ages 9–10
A way of borrowing automatically at the till. Pay the full balance each month and it’s usually free; carry any of it over and interest is added every month until it’s cleared.
Where to go next
We’re writing a full topic about this one. In the meantime, explore Money World.