How do credit card work?

[kingfencer]

ok, say i borrow 1000 at 20% interest, as long i keep on paying the minimun back each month, they don't charge me anything? i never actually owed money, i pay it off right away. and if i can't make the minimum payment how much would i be charged?

[Vinc3nt_Steele]

in order to be charged no interest you must pay off the credit card in full before the due date. If not paid IN FULL you are charged interest on the FULL amount.

[Jucius Maximus]

in order to be charged no interest you must pay off the credit card in full before the due date. If not paid IN FULL you are charged interest on the FULL amount.
Exactly...

And don't forget, if you make a mistake and pay 1 cent less than the full amount, the bank charges you interest on the ENTIRE balance, and AFTER that, your payment will be applied.

[Drew_W]

Credit cards are bad for keeping debt. If you're going to miss payments, get a line of credit.