The inside of iron can be depicted with the model of elementary magnets. We can imagine that there are countless tiny magnets in the iron, which can rotate freely. If there is no magnet closeby, they randomly point in all directions. If a magnet is close to the iron, however, all elementary magnets within align, so that the iron itself becomes magnetic.

Be carful not to confuse magnetism with (static) electricity. Charges are not interesting for magnetism.