Credit Card Need-to-Know
The Good, the Bad, and the Confusing
A college student's take on credit cards
What you should know
A credit card is like a loan that you pay off to the credit card at a later time.
It is different than a debit card that pays for purchases directly through your account.
Credit cards offer many different features and rewards, so make sure you find one that is right for you.
Credit cards are great for purchases where you don't have all the necessary money at the time of purchase, but too many of these purchases without paying off the debt can cause big trouble.
What you should look for
They should look for low APR and annual fees.
What you should be aware of
Companies can change these rates, especially if you miss a payment. Make sure you know all the risks before signing up for a card.
Important Credit Terms
Annual fee: a charge for using the company's features
Balance transfer fee: a charge for paying off a card with the balance of another card
Cash advance: a temporary loan with very high interest