Credit Cards are important?
Convenience: Credit cards have made daily financial.
transactions convenient since, We do not need to carry bills or
coins or bother about correct change.
Safer: Credit cards are safer than Cash. When stolen they
can be replaced easily and nothing is lost.
Builds Strong Credit History: Above all credit cards builds
a credit history that helps to buy larger purchases such as house
The Credit Bureaus keep a record of your credit habits ever since
you started buying things on credit. The bureaus report back the
lender what they’ve recorded over the years whenever you apply for
a loan to buy anything big such as a house, a car or a boat.
Good credit is like good GPA.
To Have Good Credit : Simply Pay Your Bills/Loans ON TIME.
The three largest Credit Bureaus:
Credit Card Basics
A credit card is a Loan, in the simplest of terms. You Borrow
Money from the credit card issuer when you buy something. A Grace
Period is the period of time between when you make a purchase and
your payment is due. If full payment is made, no interest is Charged.
If you don’t pay them back immediately, a Finance will Charge a
small amount you pay for borrowing money. The amount charged is
determined by a pre-set percentage rate—called APR, or Annual Percentage
Kinds of APR
Variable Rate: Rate varies—based on big financial indexes
such as the Prime Rate offered by nation’s largest banks (or strange
indexes such as LIBOR).
Fixed rate: Rate is fixed. Whatever happens in economy the
credit card issuer will stick to the same rate. Minimum Payment
due is determined by your credit card issuer, but it typically runs
at about 2% to 3% of your balance.
American Credit Card Industry
Networks: The credit card companies, such as Discover Card,
Visa, MasterCard, American Express. They make money by charging
the banks who issue their cards an “association fee”—that is, a
fee to be “associated” with them.
Issuers: Banks that issue unique version of the cards. They
charge cardholders interest on their purchases and cash transactions.
Some may charge an annual fee or other potential fees—for cash advances,
late payment etc,. Also make money on merchant side.
American Express and Discover are both networks and issuers.
Smart Things to do
Make sure you Understand the terms of the credit card such as APR,
the fees before getting it. Get a Credit Card: Build a credit
history and develops disciplined spending habits. Keep Track of
the your credit card accounts. Never give out credit card number
to person or website you do not trust. PAY AT LEAST MINIMUM BALANCE
ON TIME. KEEP A GOOD CREDIT HISTORY! If in deep debt, ASK For Help.
How to apply for credit cards?
The credit card can be applied from regular forms available at
various places such as college unions, magazine or Online.
Online: Fast decision and as safe as the mail forms:
Below links of some the top credit card applications:
USA Credit Card
Visa Credit Card
American Express® Credit Card for Students
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