The premise of credit is very simple; you buy items and then pay them back with agreed payments. This video, from Capital One, gives everyone an insight in to the different kinds of credit so they can make the informed choice as to which is the best for them. Credit takes on many different forms apart from a credit card; these include hire purchase, loans, overdrafts and mortgages. Always ensure you can meet the payments before entering into a credit agreement.
One of the most common uses of credit is the bank overdraft. This allows you to spend, up to a set amount, more than you actually have in your account. The repayments vary but are usually paid back out of your salary when it goes into your account. There are often fees or charges for this service, and you will definitely be charged if you go overdrawn without having an agreed overdraft in place.