A credit card lends you money for a short time. Used well, it costs nothing and builds your credit score. Used badly, it is one of the most expensive loans in the US.
Credit limit: the most you can owe at one time, for example $500.
Statement: a monthly bill. It closes on the same day each month.
Statement balance: what you owed on the closing day.
Current balance: what you owe today, including new purchases.
Minimum payment: the smallest amount you must pay to avoid a late fee. Often small, like $25 or $35.
Due date: the last day to pay. By law it is the same day each month, at least 21 days after the statement is sent.
APR (annual percentage rate): the yearly interest rate on what you do not pay. Often over 20%.
Grace period: the time between the statement and the due date. Pay the full statement balance by the due date and you pay no interest on purchases.
Your statement balance is $400.
You pay $400 by the due date: interest is $0.
You pay the $25 minimum: about $375 carries over and interest starts. At 24% APR, that is roughly $7 or more a month, and new purchases may also start to charge interest.
Open the card's app and find Autopay.
Choose Statement balance (not "minimum payment").
Choose your checking account and save.
Keep enough money in checking before the due date.
Taking cash from an ATM with a credit card is a cash advance. It usually has a fee, a higher APR, and no grace period. Use a debit card for cash.
Many cards have no annual fee (a yearly fee just to have the card). Rewards cards give points or cash back. For a first card, a card with no annual fee is usually enough.
Some cards charge about 3% when you pay in another currency or with a foreign shop. If you travel home often, look for a card with no foreign transaction fee.
Paying only the minimum because the app shows it first.
Paying one day late. You can get a late fee and, after 30 days late, a mark on your credit report.
Using most of your limit. Keep your balance low compared with your limit.
Under 21? By law you need your own income, or a co-signer, to get a card.