Credit Cards 411

What you need to know about Credit Cards

The Basics Of Credit Cards

As you get older you will need to build your credit score so that in the future you can use your credit to use different forms of credit like getting student loans and credit cards. You need to be smart about what you spend because spending too much can get you into debt very easily because when using a little card to pay for things is easy and just makes you think that you will pay it latter and it will be okay. The Credit Bureau keeps track of your credit and the lenders giving you money and file a Credit Report. To be able to get a student loan, be able to have other credit cards, and have a mortgage you must have creditworthiness which basically explains itself.

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Credit Cards: What you need to know

A credit card is a card that you can use virtually on anything and anywhere it is accepted. The card gives you a way to buy something with out actually paying for it until the end of the month. Although it helps build your credit score, it is very temping to abuse this power so of course there is a credit limit. Also there can be annual fees you have to pay for having the card, penalty fees, and over- the-limit fees. The way your bank gets money in return is by the interest rate (APR). The percentage of the interest rate is the percent you pay out of the total amount you already owe.

Tips on how to safely use your credit card.

Using your credit card is very empowering and using it does not feel as if you are actually spending your money, that is until the end of the month. A lot of people have gone into debt because they spend too much and cannot pay their bank back and let alone the interest. You should have a budget and always keep it in mind when spending money. Knowing the difference between your needs and wants is also something to keep in mind because spending it on things that already really needed can wipe you out and leave you with almost no money. Think before you shop and if you are in debt, only let it be smart debt because of your mortgage or student loans and not for too many shopping sprees.