How do credit cards work?
If you have a history of good credit, chances are you receive offers for credit cards all the time. While some offer zero- to low-percent financing, each have their own basic set of terms which are further explained below:
Credit Card Terms
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Term |
Explanation |
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- A flat fee for being able to use your credit card. |
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- Available Balance |
- The balance remaining on your credit line for future use. |
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- Cash Advance Limit |
- The maximum amount you can withdraw for cash and have added to the amount you owe. |
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- The maximum amount that can be charged or accessed on a credit card. |
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- The amount you’re charged as a percentage of your balance. |
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- The amount of time you’re allowed to make a payment without incurring an interest charge. |
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- The Annual Percentage Rate (APR) you incur for revolving the balance. |
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- A penalty fee that is imposed when your payment is received late. |
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1. Know These Features and Benefits and Find the Credit Card That is Right for You
2. Be Prepared: Know How Banks Calculate Your Credit Card Interest Rates
3. 14 Penalties and Fees You Should Be Aware Of
4. 8 Credit Card Terms You Need to Know
5. Get the Best Credit Card Rates And Maintain Good Credit
6. Credit Card Basics
7. Glossary of Credit Terms
8. Getting a Credit Card? Know Your Credit History
9. Get Rewards with Your Credit Card
10. Shopping for a Credit Card Online
11. Understanding Your Credit Card Statement
