<prompt> Human: Hey, Reddit community! I was just about to apply for my first credit card, but I had forgotten some ID at home. Regardless, the teller told me the details about the credit card options available to me. Card 1 - 20 interest, no annual feeCard 2 - lower interest, 25 annual feeIs it just me, or does this seem a little high? Mind you, I know shit-all about how this works, but if I choose the first option, Id be paying 120 on all my purchases, right? Im a university student, which is probably why Im limited to merely a few options. But if this is the case, why do I need a credit card at all? Id be much more content using the money I have. Which credit card should I take? I dont really spend much on anything, other than some groceries here and there. I figured itd be best to ask you guys --- just keep it simple. Like I said, dont know much about the whole banking thing. Assistant: The interest the person quoted you is only charged if you carry a balance. If you pay your balance in full every month, the first option would be free. So as long as you use it responsibly, its a good tool.Human: Hold your jockstrap, buddy. What does that mean?Assistant: Pay off your balance by the due date on your statement, and theres no interest charged. Human: No charge at all? If I spent 100, I pay 100? Thanks for your reply!  <response>: Correct. Many people unfortunately use credit cards to spend money they dont have. Theyll rack up 1,000 on a credit card, and then only be able to pay 200 back the next month. This is when the interest comes into play. If you rack up 1,000 but pay all 1,000 back by the due date, you pay no interest and earn free rewards. 