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- Hey Jessie, I think I'm going to apply for a credit card with a limit of $4,000 so I can get a computer without having to pay for it.
- That's cool, but what do you mean by not "having to pay for it?"
- The limit for the card is $4,000, so I can buy my computer and not have to pay with my own money!
- Just because you use a credit card doesn't mean you aren't responsible for the cost.
- What do you mean?
- With this credit card you want, you can spend up to $4,000 per month, but whatever you spend with the card becomes debt.
- So... I do have to pay for it?
- Yes, you will eventually have to pay for your computer. The cool thing is that you can pay minimum payments each month without hurting your credit score
- Okay, so how much time do I have to pay off my new debt?
- That's the part you'll have to pay attention to. Your credit card comes with an interest rate on debts, so as long as you have a balance on your card, you will be paying additional interest payments.
- Okay, I think I'm getting a better understanding of this whole "credit card" thing, Jessie!
- No problem, Ben! Let me know how you like your new computer!
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