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in this video we're going to talk about how credit cards work and how we can use yours to earn rewards build a strong credit history and get access to better loans and credit cards in the future but first the basics a credit card is tied to a revolving credit account at a bank when you charge a purchase to your card you're essentially borrowing money from that bank the bank pays that store and you pay the bank back later you're allowed to borrow up to a certain amount at a time this is known as your credit limit once you've reached your limit you can't charge any more to the card until you've paid off some of your balance but before we go any further let's talk about interest when you spend money on a credit card you'll be charged interest on the amount you owe your balance you won't be charged interest immediately though as there's something called a grace period on all your credit card purchases at the en

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