Studies have shown that people generally maintain a business relationship with their first card issuer for 15 years, which is why creditors want to get customers when they are young. The relationship lasts so long because the young consumer doesn’t know how to find better deals.
Many people are suggesting that credit card companies are aggressively trying to get students hooked on credit by luring them with T-shirts and other freebies when they apply for cards. This guide is designed to give you the facts you need to be a wise consumer and the tools to use credit to your
Read more…Credit Cards: What You Need To Know
Understanding the language of credit cards will help you make informed decisions when choosing one. Below is a list of some of the most commonly used credit card terms.
Annual FeeThe once-a-year cost of owning a credit card. Some credit card providers offer cards with no annual fees. The annual fee is part of the total cost of credit.
Annual Percentage Rate (APR)The yearly interest rate charged on outstanding credit card balances.
BalanceAn amount of money. In personal banking, balance refers to the amount of money in a savings or checking account. In credit, balance refers to an amount of money owed.
Credit BureauA
Read more…Credit Card Terminology
InterestWhen you use your credit card, the issuing bank is really giving you a loan for the amount of your purchases. The bank charges a fee, called interest, for using its money. The credit card company pays the dress shop or the furniture store within a few days of the transaction, and you must begin repaying the loan when your monthly statement arrives in the mail.
All interest charges can usually be avoided by paying the balance in full within the time limit specified on your statement. Obviously, the quicker the balance is paid in full, the less interest is paid.
Read more…Understanding Credit Costs
