Buy now, pay later
The Basics of Credit
These three words will help you get credit:
Character: A sense of financial responsibility.
Capacity: Financial ability to repay.
Capital: The value of what you own.
What You Need to Know About Credit Cards
- Sign-up bonuses
- Cash back
- Investment rewards
- Frequent-Flyer miles
- Reward points
- Grace Period
- Building credit
- Universal acceptance
- Blowing your budget
- High interest rates
- Increased debt
There are quite a few fees that may come along with the credit card you sign up for. Most credit card companies require a annual fee which is just a simple fee that is required every year. There are also interest rates (APR) that is regularly paid at a particular rate, but not every company has these rates. If you do not pay your balance on time, you will be charged a specific penalty fee that is different for every company. You might have to pay these fees if you go over or exceed your credit card limit. These companies can charge you for these mistakes because in the beginning, when you first signed up, you signed an cardholder agreement for your account. Each credit card comes with a limit that you can change. This limit becomes the maximum amount of money you can spend on that card. This helps a lot of people budget their expenses.
Smart Consumers: Don't Fall Into the Credit Card Trap
- You should definitely keep track of all of your purchases when using a CC and also you should watch your budget and make sure you don't go over it.
- Be careful who you give your information to, make sure the sources are reliable.
- Pay off the balance on your cards at the end of every month.