By Joe Adolfson

The Basics of Credit

As life goes on and you start living on your own, and start purchasing and paying for things that have your name on them. Some of these things may be difficult to pay off in the moment so you may want to consider getting a credit card. A credit card will allow you to purchase items on credit. This is beneficial for making difficult payments because credit is given to a customer by lenders in which you can pay off during a later time. Although this may seem very beneficial, credit may prove to be a struggle. Depending on your credit report, you may jack up your credit score causing some issues. Your credit score and report are both reflections of your ability to pay of loans given to you. These forms of credit, or loans, come in may different forms. For example, student loans and credit cards. These are typical forms of credit because of the large payments needed to be made that may seem difficult at the time. In addition to this, personal loans add to your credit. These loans are typically granted for personal use only. Another disadvantage can be your interest APR. This is an annual charge sent your way based off of your funds over a term of a loan.
There are plenty of factors that contribute to how much and whether or not you can receive credit. Some factors include: Credit score, income, payment history, etc. Lenders determine your credit by your income as well as your payment history. If you receive low credit, don't worry. As long as you use your card responsibly as well as make payment on time, you can easily increase the amount of credit you receive. In order for credit card companies and lenders to know, credit reports are sent as well as a credit bureau. This is a company that keeps track of credit ratings and makes it available for credit card companies. Depending on such factors including you payment history, credit score, and credit report, you can receive positive credit worthiness. This is just an assessment of your payments and proves you are responsible for debt and loans.
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Credit Cards: What You Need to Know

Growing up, everyone wants a credit card. But what exactly is a credit card? What does it do? How does it Work? A credit card allows you to purchase items and services on credit. But credit isn't exactly easy to understand. It comes with many restrictions and benefits/disadvantages. For a start, credit cards don't come cheap. You will be charged for owning one and charged for certain penalties. For example, making a payment for the over-the-limit-fee. This is a fee charged to the cardholder when they exceed the cards credit limit which is granted and restricted by the company. In addition to these fee, you are charged an annual fee as well as an interest APR. Both of which are fees made to be paid for the use of a card as well as the loans granted. Penalty fees may be an issue if you are unable to make payments on time for a loan. Some benefits include being able to build good credits well as having the ability to track your expenses.
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Knowing how and what you will be charged for using a credit card is important but pretty easy to understand. But you must make sure you use it correctly in order to maintain a healthy score as well as avoiding fees and additional payments. Things to consider is where should you use your card? Unlike a debit card, a credit card is basically taking the money from a company so they can make a payment for you. But this payment must be owed back whether in monthly intervals or as a full. Fully paying back is ideal because no additional costs can be added on. Credit cards are a great choice to use when you are shopping online, making large or electronic purchases, or if you are traveling.

Shopping for Credit

Bank of America Better Balance Rewards

Your APR for this card will be 0% for 12 billing cycles. After these 12 cycles pass, your APR will increase from 12%-22%.

Annual fees for this card are great if you are a responsible credit holder. You won't be charged if you are able to manage your credit card balance. This also persuades you in a way to manage payments on time, thus increase your credit score.

Late payment fees will be charged for $37 and returned checks will be a cost of $27. Balance transfers and cash advancements will both be additional charges as well. Both will be an additional fee of about $10 or 3%-5% of the amount.

This card includes a great amount of benefits. These include: staying protected, online shopping security, chip cards, overdraft protection, account alerts, text banking, stay connected. The incentive to choosing this card is that you will be rewarded with many benefits.

Chase Slate

For this card, your APR will be a 0% intro APR.

There will be no added on annual fee if you select this card.

Late payment fees will add a charge between $15 and $37. There is no additional fee for a returned check. Balance transfers are 0$ for the first 60 days. Following this, the fee will increase to $5 or 5%, whatever the greater amount it. Cash advancements will add $10 or 5%, whatever the grater amount will be.

This card includes low interest rates, intro balance transfer offers, monthly FICO scores for free, 0$ annual fees, and No penalty APR. The incentive to this card is that you are required to pay less for fees as well as annual rates charged for the card. But a disadvantage is that you won't receive as many benefits as you would if you select the Bank of America card.

Smart Consumers: Don't Fall Into the Credit Card Trap

As previously mentioned, you should be aware of where to use your credit card. Being aware of this is beneficial and important. For example, you should not use a credit card at an ATM. It is important to pay of your loans and credit because your credit history matters. After college, having good credit will allow you to rent an apartment. It is important to budget and make sure you don't fall into a bunch of credit debt. Always make sure you can borrow an amount of money which you can pay back.