How exactly does a credit card work?
Credit Card
Tasswon asked:
I was just curious as to how a credit card works. Like is it used so that if you dont have cash you can just use the card and then pay at the end of the month.
Glenn
I was just curious as to how a credit card works. Like is it used so that if you dont have cash you can just use the card and then pay at the end of the month.
Glenn
May 18th, 2009 at 6:41 am
Lewis
Basically, you make an agreement with the credit card company. They will pay for purchases you make with the card, but then you have to pay them back plus a little extra later. The little extra is called interest. Depending on the deal you make with them and how much you spend, it can add up to being a lot more that you’ll have to pay them back.
May 21st, 2009 at 2:36 am
Kelly
If you pay off the balance every month, you don’t pay interest. Unfortunately this doesn’t happen. The debt mounts.
May 22nd, 2009 at 9:25 pm
Kathryn
neither pro or against credit card or discourage readers, but just provide you this real experience of some people i knew recently to be aware before involving with credit card.
No matter how good your payment records or stimulus program is going to proceed, the banker can rise to max interest rate any time for any reason despite of what their adv is from the beginning like free interest rate after 1 year then certain low % interest thereafter. This happenned to some people after few years with credit cards. Best way to solve this, I dont know yet.