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Getting to Know a Bit About Credit Cards

August 6, 2008

For those cash-strapped individuals or for those who do not like the idea of stuffing their wallets or purse with wads of bills, credit card is the name of the game when it comes to contemporary shopping and dining.

Every business establishment in the metropolis or any where in the country accept major credit cards, from Master to Visa to Diners Club and some boutiques even offer discounts for items that will be purchased through credit. Many people nowadays own at least one credit card not really to flaunt to friends or coworkers, but it has already become sort of like a norm in this modern society.

Most sales transactions are done with a swipe of that plastic card. Some purchases couldn’t wait until payday, and credit cards are there to save the day. Now, since more and more people are availing of this so-called plastic money, they might as well familiarize themselves with it.

Below are some things that cardholders have to deal with:

  • Annual Fee - Some credit card companies ask for an annual fee (usually begins at $25.00 up to $120.00), but there are also others who don’t. The price of the fee depends on the card company. Also, sometimes the annual fee is waived off if one will opt for the Gold Standard or something like that. There are certain credit card like Master Card which has a Gold Card and a Silver Card. As has been mentioned earlier, sometimes the annual fee is already free for those who will opt for the card that has a higher rank or level (like perhaps a higher credit score).
  • Annual Percentage Rate (APR) - Generally shows how much credit the cardholder will settle every year (lower rates mean lower interest charges). Its two types are Fixed APR (no adjustments are ever made on percentage rate) and Variable APR (the percentage rate varies)
  • Billing Cycle (27 to 33 days) - The span of time covered from previous to current payment statements
  • Grace Period (around 20 to 30 days) - For those no-interest purchases

So, when will you get one?

by  Sturat Mitchel

Written by paydayla · Filed Under Credit Cards 

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