How Does A Credit Card Work? Beginner Guide 101

The complete guide to credit cards which explains everything from what a credit card is, everything about how it works, balance categories, credit limits, how fees and interest work and everything in-between.

There is a lot of information in this video where I try to cover as much as possible about how credit cards work starting with the application process and the way credit cards make decisions through to the different ways you can make payments.

If you are a beginner or new to credit cards and want to get the definitive 101 guide, this should help understand exactly how credit cards work and all the key concepts.

If you're not sure what the credit card monthly cycle is, how different types of balance work or what trailing interest is, you'll know everything by the end of the video.

Here are the key chapters - feel free to jump around the different parts to find bits that you're interested in or go back to a part that you want to watch again.

TIMESTAMPS
1. Introduction – 00:00
2. What is a credit card? – 02:23
3. Credit card application process – 03:51
4. Types of credit cards – 07:54
5. The credit card monthly cycle – 09:10
6. Balance categories – 10:55
7. Credit limits – 12:54
8. Credit card interest – 14:06
9. Credit card fees – 20:29
10. Credit card payments – 23:43
11. What happens if you don’t pay your credit card - 28:30
12. Benefits of using a credit card - 30:20
13. Conclusion – 34:16

Here are some more helpful videos to understand how credit cards work.

HOW CREDIT CARDS WORK

CREDIT CARD TIPS AND GUIDES

INTERESTING THINGS ABOUT CREDIT CARDS

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DISCLAIMER: Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.

DISCLAIMER: I am not a financial advisor and this is not a financial advice channel. All information is provided strictly for educational purposes. It does not take into account anybody's specific circumstances or situation. If you are making investment or other financial management decisions and require advice, please consult a suitably qualified licensed professional.

[SashaYanshin]

It's a long one, but I really tried hard to pack as much information in as I could! Hope somebody finds it useful!

[serenahussain]

I wish we are taught some of these things at school and their importance. I just turned 28 and I have never had a credit card and its so daunting applying for one not knowing what I may be getting into.

[lievenm]

Sir you’re doing absolutely an awesome job walking the masses towards financial freedom! Comparison with US ( Canada) is super useful!!! Please I think everyone would like your deeper emphasis on cc interest rates and the notion of daily compounded rates which I think most viewers are unaware of. Keep these vids coming and thank you for the wholesome knowledge! Most tubers on these topics should close their books and learn from you.

[oliverflores]

Hey man your video really help out alot. I like how clear you explained everything. I'm definitely following you

[vanmaisterz]

Finally, the video that I was looking for! Thank you Sasha, very very useful

[leonardestrella]

Great video Sasha once again jam packed with valuable info. Thanks for the effort sir .

[sunnie]

Thank you so much for this video. I was so stressed trying to understand credit card terms and every video I saw threw around lingo without properly explaining them in a way that's understandable (aka how you would explain it to your grandma). This was perfect.

[aigerimsadyrova]

The comparison with US credit system is super useful. Thank you for the video!

[Nevermore]

Great video, super helpful to get my head around how these things work - thanks!

[asdfghjkl-fhcj]

Great videos mate, really helping to make sense of all this

[andygs]

Great video! Very informative and it helped me learn a few new things.

[carlpoynton]

I'm grateful for your videos..thank you

[alottoftea]

This is the most informative credit card video I've watched - thank you!

[deansmith]

Sasha thanks mate, I've used credit cards instead of a loan or finance on a car because I chose how much I pay and I like to pay quickly.

[Dragonadvisor]

Thanks so much for the info please continue to do these even though it might seem unprofitable by the veiw count, just means the wise and open minded or few but hopefully the rest comes around.

[spellerwix]

it certainly was a long one, OW ER..but another great video, lots of information !

[moseschali]

Hi Sasha, great video but quick questions. If I have a minimum payment to make in a month. What happens if I don’t spend any money on my credit card that month? Am I affected in any way?

[HQ]

This is amazing! Thanks.
I'm a new student immigranting to the UK and we didn't use CC's back home, this tells that i probably shouldn't get a credit card until i have a decent job post-grad. Would that decision harm me in anyway in the future?

[nivea]

You mentioned in the video...Where's the link in the description for the tesco banking credit card?

[kelisa]

brilliant video. as a young person who had no idea how credit cards work, i feel so much more informed. thankyou! would you recommend a 18 year old to get a credit card?