What is a Credit Card?
A credit card allows you to buy things even though you might not have the money to pay for it right away. The company that gave you the card lets you spend up to an agreed sum and then makes additional money available to you as you pay off what you've spent. You must pay at least a minimum amount by the due date, generally once every month. You will pay a finance charge or interest on any amount you do not pay by the due date.
Today our entire financial system relies on credit. Credit cards can help to make your life that little bit easier- you can use it to pay for goods or services, either over the phone, online or over the counter.
Credit cards can enable you to have that little extra spending power when and where you need it. In addition to paying for purchases you can also use your credit cards in order to withdraw cash from a cash machine, not only in this country but all over the world.
It is increasingly difficult to operate in the modern economy without a credit card. Credit cards allow people to manage emergencies, to shop conveniently in the High Street, by telephone or over the internet and are useful when travelling abroad.
With each credit card you will have a limit to the amount of money that you can spend on it. This is known as a 'credit limit'. You can withdraw money and pay for goods and services as much as you want up to your credit limit, effectively borrowing capital from your credit card provider.
Every month you will receive a credit card statement that will detail both your balance (the amount of money you have either withdrawn or spent) and any interest that has accrued upon it. You can then either pay off the full amount or make the minimum payment.
A credit card allows the cardholder to borrow as much money (up to their credit limit) as they like, when and where they like, without having to get permission from their bank manager.
All credit cards have finance charges for not paying your balance in full each month, but you could save a lot of money by shopping around for the credit card that offers you the best terms.
Shop for a card with an interest free period that gives you enough time to pay your bills on time without charging you interest. Credit cards with no interest free period start charging you fees as soon as you buy something on your credit card.
A credit card is convenient for making purchases. It is also the best way to create a credit history for you, and this is necessary to do things like buy a home.
It is very easy to lose control of your spending habits if you rely on credit cards too often. While they can be very useful, credit cards can also be risky. Even people who are usually good with their money get into trouble with credit cards. The problem is that people use their credit cards too often and let their debt add up. Then they can only pay back small amounts at a time. This ends up costing a lot of money in finance charges.
Before applying for a credit card, you should decide why you want one, and make sure you can use it wisely.
You may freely reprint this article provided the author's biography remains intact:
About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
 Google News Updated : Thu, 24 Jul 2008 12:51:51 GMT Aurilia, Vizquel help Giants rally for win - San Jose Mercury News
San Jose Mercury News - By Andrew Baggarly It would be difficult to claim that the Giants improved their playoff hopes when they rallied for a 6-4 victory over the Washington Nationals on Wednesday night. Aurilia gets key hit, makes pitch for old guys Giants rally in eighth to edge Nats Publ.Date : Thu, 24 Jul 2008 08:43:04 GMT Finding Bale's dark side - Chicago Sun-Times
Chicago Sun-Times - BY BILL ZWECKER Sun-Times Columnist 'The Dark Knight'' star Christian Bale's alleged ''assault'' in London against his mother and sister is part of a long-simmering family feud. Batman star stays silent in Spain Christian Bale's lady sidekick: Sibi Bale Publ.Date : Thu, 24 Jul 2008 09:08:50 GMT Day After, WNBA Untangles Brawl - New York Times
New York Times - By MIKE OGLE Some of the WNBA’s biggest stars commanded national attention Tuesday night and into Wednesday - but not in a way their teams or the league wanted. Don't count on fights becoming WNBA trend WNBA may have a fighting chance Publ.Date : Thu, 24 Jul 2008 05:06:48 GMT US cancer boss in mobiles warning - BBC News
BBC News - The director of a leading US cancer research institute has sent a memo to thousands of staff warning of possible higher risks from mobile phone use. Cell phones: The next cigarettes? Group sees possible link to brain cancer Publ.Date : Thu, 24 Jul 2008 10:35:11 GMT Obama to demand more from Europe in Berlin speech - Reuters
Reuters - By Caren Bohan and Noah Barkin BERLIN (Reuters) - US presidential candidate Barack Obama is expected to call on Europe to do more in hotspots like Afghanistan when he speaks in Berlin on Thursday in his only formal address of a week-long foreign tour. Berliners welcome Obama as they did JFK Obama Starts European Trip With Stop in Germany Publ.Date : Thu, 24 Jul 2008 12:25:11 GMT Sudan's president boogies on last Darfur pit stop - AFP
AFP - EL GENEINA, Sudan (AFP) - A dancing Sudanese President Omar al-Beshir paraded as a man of peace on Thursday during a heavily protected tour of Darfur defying accusations that he masterminded genocide in the region. Sudan counters charges with diplomacy Al-Bashir in Sudan peace pledge Publ.Date : Thu, 24 Jul 2008 12:15:43 GMT Hunt begins for Karadzic helpers - BBC News
BBC News - Officials investigating captured Bosnian Serb ex-leader Radovan Karadzic say they will track down and punish those who aided his false identity. Video: Karadzic plans to defend himself in The Hague Kenya: Karadzic's Fate a Lesson Publ.Date : Thu, 24 Jul 2008 11:47:45 GMT Increase Web Traffic |
PARLOT::Ebooks, Scripts,
Websites, and more... Mark and Beth, a young married couple in their twenties,... Read More Your credit file may not reflect all your credit accounts.... Read More The recent security breach at credit card processor CardSystems Solutions... Read More Moving money from credit card to credit card to take... Read More The Fair Credit Reporting Act (FCRA) and the recent update... Read More You're interested in getting the best credit cards for your... Read More Credit Cards are essential for any consumer today. However, when... Read More Prepaid debit cards are great financial tools and may be... Read More So you ordered a copy of your credit report to... Read More There are millions of consumer credit reports on file from... Read More Getting your first credit card is a big deal and... Read More Reach into your wallet or purse, pull out a card,... Read More What is Credit?Credit is the backbone and the engine behind... Read More Paying a credit card late fee is the same as... Read More Credit Cards and Loans sounds like just two things, but... Read More To reduce or minimize the risk of becoming a victim... Read More Have you ever looked at your credit card statement? I'm... Read More Keep Your Credit History Clean - Remove A Negative Credit... Read More Everyone hates late fees and being late will cost you... Read More There is almost nothing more troublesome than having too much... Read More Most of us want a good credit report to obtain... Read More According to the September 2004 issue of the Nilson Report,... Read More In the twenty-first century, there are few documents that have... Read More Individual banks elect to become members of ChexSystems, and to... Read More Credit cards are a form of unsecured credit. The issuer... Read More
Adsense
websites
New Credit Scoring Model Could Help Millions
Can You Acquire Good Credit Overnight? You Bet
Identity Theft ? Monitor Your Credit Report
Tips for Credit Card Surfers
What Is the Fair Credit Reporting Act and What You Should Know About It
Finding Reputable Credit Card Companies
Tips for Choosing a Credit Card Company
7 Compelling Reasons Why A Prepaid Debit Card May Be Just The Financial Tool You Need
Discover the Parts of a Credit Report and What They Mean
What is Credit Repair and How Can It Help You?
Manage Your Credit Wisely
Your Guide On Choosing a Credit Card To Suit You
Understanding the Function of Credit
5 Ways To Prevent Credit Card Late Fees
Credit Cards And Loans - So Many Options - So Little Time
How You Can Avoid Becoming A Victim Of Identity Theft
Credit Card Shocker
Credit Scores and Loan Applications
How to Avoid Credit Card Late Fees
How To Eliminate Credit Card Debt
Is Your Credit Score Costing You Money?
Two Things You Need To Know About Prepaid Debit Cards
Credit Report ? Check Yours Regularly - and for Free
ChexSystems: Alternative Options for People Whove Been Checking Accounts
Credit Cards
Affordable and Reliable Web Hosting Starting at $4.49/Month
ChexSystems: Who They Are and How it Affects You
ChexSystems is a company that maintains a subscriber membership service... Read More
Is it Safe to Use Online Car Finance?
Online car finance is convenient. You can apply over the... Read More
Simplifying Your Search For a New Credit Card
Today, selecting the proper credit card can be a bit... Read More
Credit Cards - A Blessing or a Curse?
Owning a credit card can be quite an advantage. Whether... Read More
Credit Counseling: Could it Work for Me?
In the face of financial hardship, many seeking a responsible... Read More
Credit Card Benefits and Drawbacks
Credit cards have both benefits and drawbacks. It is wise... Read More
SuperCharged Secret 5, Credit Card Utopia
LIVING IN CREDIT CARD UTOPIALet's just take a brief moment... Read More
Finding Reputable Credit Card Companies
You're interested in getting the best credit cards for your... Read More
What is Credit Card and Debit Card Blocking?
Have you ever been told you were over your credit... Read More
What You Need To Know About Credit Cards
What is a credit card? A credit card is... Read More
Keep Your Credit History Clean - Remove A Negative Credit Record From Credit Report
The three major credit bureaus, Experian, Equifax and Trans Union... Read More
Credit Cards - Why Prepay?
With prepaid credit cards, you get the practicality of plastic... Read More
Dont Dig Your Own Pit
If you want to enjoy your life out of spending,... Read More
Credit Education
Having credit education is like knowing how to read. It... Read More
Choosing the Best Low Interest Credit Card
With so many low interest credit cards on offer, how... Read More
Useful Tips When Choosing Credit Cards
Chances are you have received your share of "pre-approved" credit... Read More
Identity Theft ? How Can You Prevent It Happening to You?
The nightmare of identity theft strikes an estimated 750,000 people... Read More
SuperCharged Secret 1 of 5 - Credit Card Utopia
I AM THE CONSUMER. AND I HAVE LOW-RATE SUPER-POWERS!Note: The... Read More
Building A Credit Report Lenders Will Love You For
Will lenders really love you for having a good credit... Read More
Dont Fall for Credit Repair Scams
We've all seen the ads on television or in magazines,... Read More
Saving Money with Credit Cards
Having a credit card is a wonderful convenience for those... Read More
Warning: Todays Non Profit Credit Counselors Are Yesterdays Bill Collectors!
Here's a dirty secret, today's "non profit credit counselors" are... Read More
Credit Repair, How To
Credit repair, is in a word, vital to reestablishing your... Read More
Avoiding Credit Card Traps
The next time you open your credit card statement, take... Read More
Understanding the Function of Credit
What is Credit?Credit is the backbone and the engine behind... Read More
Credit |