Credit Card Basics – Understanding Five Main Credit Card Terms

Credit cards are easy, right? You have a credit limit. As long as your balance isn't as high as your credit limit, you can pay for things with your credit card.

When you pay for something with your credit card, you don't have to pay for it until later. You pay interest on your credit card balance and as long as you don't go over your credit limit, everything's fine.

Well, not quite. Here are some of the most frequently asked questions about credit cards - and their answers, of course.

What's interest?

In a nutshell, interest is money that you pay a lender for the privilege of using HIS money to buy something.

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