Credit is nothing new and the premise is very simple. You purchase an items and pay for them at a later date through regular monthly payments. You pay for this facility through interest being added on to the original price of your purchase. Apart from credit cards, hire purchase, mortgages and loans are all forms of credit. This video will guide you through the different kinds of credit and simplify the process.
An overdraft from the bank is one of the most commonly used type of credit. You will be allowed to spend more than you have available in your account up to a pre-determined amount. You will then repay this is one lump sum or through repayments. There are charges and fees to take into consideration when applying for an overdraft.