![]() Some things to consider when choosing a credit card is their interest rate, any annual fees or foreign transaction fees they may offer, and their late payment fees. Many airlines, hotels, and retail stores also offer credit cards that can unlock rewards. This might be from your bank, another bank, or an entirely different company. It can be tempting to just get a credit card through your bank, but it is worth doing the extra research to pick the best card for you. Things to consider when choosing a credit card If you do not pay it in full, many banks will charge interest on the full amount, not just the outstanding balance - so watch out! Keeping track of your finances and sticking to a budget can help ensure that you are always prepared to pay your bill. Therefore, it is super important that you always pay your end-of-month bill on time and in full. If you are unable to pay your end-of-month bill on time, your interest payment will increase steeply, you may have to pay a late fee, and all of this will negatively affect your credit score. ![]() ![]() As you will not see your bank account balance go down after any purchase, it is easy to lose track of your spending, and then be shocked by a large bill at the end of the month. Watch out!īecause credit cards do not charge you until the end of the month, they can easily lull you into a false sense of security that makes you feel as if you can purchase more than your budget allows. Having a high credit score will serve you well in college and beyond, and using a credit card is a great way to start building up your credit. Lenders view your credit score when deciding whether to give you a loan, and may also use it to determine the interest rate on a loan. A credit score is essentially a measure of how trustworthy you are, and when you consistently pay your credit card bill on time, your trustworthiness grows. When you use a credit card, you are borrowing money from your bank, and if you pay it back consistently at the end of each month, your credit score will go up. Building CreditĪ credit card is a great way to start building up your credit, which is especially important for international students who do not have credit history in the US. Many credit cards will not charge you any interest if you pay off the balance on your bill within that billing cycle. Because you are essentially taking out a loan from a bank, you will pay your bill at the end of the month with interest. When you swipe a credit card to pay for an item, you don’t get charged right at that moment rather, you get a bill from your bank at the end of month and you pay for all charges then. But what if you get paid at the end of each month, and do not want to spend too much money before your paycheck hits? Enter, the credit card. ![]() When you swipe a debit card to pay for an item, it immediately withdraws that money from your bank account. The most straightforward way to easily access money from your bank account is a debit card. But do you really know how they work? Read on to learn more about credit cards, why you might want one, and what you should consider before applying. You have probably seen credit cards in use, or maybe even have one yourself.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |