RIP THE JACKER - this is for you.
Here is a quick overview. What is a bank account (DEBIT card) vs what is a CREDIT card.
1. What is a bank account? (DEBIT card)
Basically the bank stores your money for you. You take your money to the bank, they open an account for you, and you keep your money in your account at the bank. You will get a DEBIT card, also known as a check card. Your DEBIT card only allows you to spend the amount of money you have at the bank. This is your money. You're not borrowing any money. The bank is simply holding it for you. Once you've spent all the money in you bank account, the bank won't let you spend anymore.
When you buy something at a store with your DEBIT card and swipe your DEBIT card through their machine, you're in effect saying:
"I don't have cash on me, but I have money at the bank, and I will use my DEBIT card to tell the bank to automatically transfer some of my money into your bank account to pay for the stuff I'm buying."
You can also use your DEBIT card at ATMs, which will allow you to get cash out of your bank account. So instead of carrying a large quantity of cash with you at all times, you can feel confident that you can get your money out with your DEBIT card at your bank's ATM.
Also, you will gain the ability to write checks. The bank will give you a check book, which is just a booklet of checks. Instead of paying your bills in cash and counting out the quarters/dime/nickels, just write a check.
This is basically all free. Some banks will charge you monthly fees; find one that doesn't. The bank provides you all of this for free because they want you to keep your money there. They know that most likely, you won't need ALL of your money ALL of the time. So when you don't need the money, they would like to use it to invest and make money with your money. Because the bank has so much money, anytime you want to take out your money, they will have cash around to give to you. Also, most banks are insured by the federal governemtn (FDIC insured), and I believe the limit is $100,000. So if something goes terribly wrong at your bank, the government will cover you up to $100,000.
2. What is a CREDIT card?
A CREDIT card is different from a DEBIT card. A CREDIT card company gives you a CREDIT card in order to TEMPORARILY LEND you money. You don't have any money at the CREDIT card company. You're BORROWING money from the CREDIT card company. The CREDIT card has a CREDIT LIMIT - this is the amount of money the CREDIT card company will let you BORROW. Most CREDIT cards start with a low CREDIT LIMIT of $500 or so, and as you prove you can PAY BACK the BORROWED money, they will increase your CREDIT LIMIT gradually.
When you buy something at a store with your CREDIT card and swipe the CREDIT card through the machine, you're saying:
"I don't have the money, but my buddies at the CREDIT card company will LEND me the money to pay for it. They will put the money in your account. I will pay them back at a later time."
The money you BORROWED when you used your CREDIT card will be on your monthly CREDIT card statement. When the CREDIT card company sends you your monthly statement, that's their way of saying "PAY ME BACK NOW!" If you have enough money to PAY BACK the FULL AMOUNT of what you BORROWED that month, then there's no problem. Once you PAY BACK the FULL AMOUNT you BORROWED, then you don't owe anything else.
The problem some people run into is this: they BORROWED TOO MUCH MONEY, and they can't PAY BACK the FULL AMOUNT. If you can't PAY the FULL AMOUNT you BORROWED, then the CREDIT card company says this:
"PAY BACK whatever you can. I will charge you a BORROWING FEE (interest) each and every month, until you finally PAY BACK the FULL AMOUNT you BORROWED. And if you can't pay the BORROWING FEE (interest) next month, I will charge your another BORROWING FEE (interest) on your BORROWING FEE (interest)."
If you keep BORROWING more money than you can PAY BACK to the CREDIT card company, then all these BORROWING FEES will add up fast and you will owe the CREDIT card company lots of money. This is how the CREDIT card company makes money.
So the key to owning a CREDIT card is to make sure you can always PAY BACK what you BORROWED. If you always PAY BACK the FULL AMOUNT when asked, then the CREDIT card company won't make money off you and you won't get in any of the trouble people usually get into with a CREDIT card.
3. Why would I want a CREDIT card?
A CREDIT card is nice because you don't have to have the money at that EXACT moment. If you see something you would like to buy now, but you won't have money until next week, then you can use your CREDIT card to BORROW money, and with the money you get next week, PAY BACK the CREDIT card comapny.
Also, as an incentive for you to want a CREDIT card, many CREDIT cards will give you POINTS everytime you use the CREDIT card. Once you have enough POINTS, you can exchange the POINTS for a reward/gift/prize.
The more you use your CREDIT card responsibility and PAY BACK the money timely, the better your CREDIT. In essence, you're showing people that you can be trusted to BORROW money, that you're good for it. You will need good CREDIT when you want to BORROW money to buy really expensive things, like a car or a home. The people LENDING you money to buy expensive things (car/home) will want to see that you have a history of responsible BORROWING. By having a CREDIT card, you can start building your reputation as a responsible BORROWER.
Hope this helps.