Pls I wnt a detailed xplnation on hw credit crds work,gud options and d tiny details d banks dnt wnt us to knw

Question

I am a new US immigrant and really want to understand hw credit cards work, bcos I need to build my credit and also would like to know d best options and the tiny details in the fine prints that the banks and credit card companies do not want the consumers to know or wish we over looked...Thank u.

Answer 1

You should never pay an "annual fee", "activation fee", or additional card fee.

Universal default is very important detail to learn about....basically, you screw up on one credit card and others find out, you will find your interest rate shoot up in one month on all cards!

Grace periods are short - 20-25 days. Pay the bill when it arrives, because some cards have an internal process that can take 10 days to post your payment, forcing you to be late.

Never carry balances "sporadically". They can and will charge you interest on the months that you didn't carry.

You will get approved at the store when you max out your card, because that's free money for them: "over-the-limit" fee.

Answer 2

Make sure you have a good job- pays enough so you can afford all your bills.

Credit cards are a way for the bank to easily loan you money. You access that money each time you use the card to buy something.

Suggestions-
Check the interest rate- this is the amount of money the bank charges for the privilege of borrowing from them. Lower is better!!

Always pay off the balance each month. When you don't pay the whole balance off, interest starts being added, and that can be expensive!

Make all your payments on time. Ignore the "grace period." A grace period is the time between when the payment is due and when a late fee is applied. When you take advantage of the grace period, the bank can and often will raise your interest rate.

Be VERY careful how much you "charge" (buy with the credit card. If you can't afford it now, you won't be able to afford it later.

Answer 3

If you are trying to build up your credit, do the following

Get a Credit Card from a Gas Station, Exxon, Texaco, Shell however, purchase your fule with this and pay off the balance at the end of the month every month.
Get another card from a Store that you purchase clothing, or goods from JC Penny, Sears someone like this, purchase needed items and pay more than the min. on the account and after doing this for 6 months your credit will be established and building, do not leave a large balance on any account and pay them off as soon as possible after the 6 months.

Answer 4

Cards like VISA, MC, etc. are companies (banks) which buy accounts receivable from vendors, at a discount. That is, you buy something at the store with a VISA. The store submits a bill to VISA, who pays them the bill less a few percent of the price (used to be about 3%, not sure lately). They then bill their customers, and make more money on interest on unpaid balances, late fees, service charges, etc. There are so many "fine print" items that there's not enough bandwidth to cover them all, but the short answer is try not to use it more than you can safely pay each month, don't be late on a payment, and if you have a choice, stay away from cars with a yearly fee. (you may have to get one like that if you are just starting out, but you should be able to get others in a couple of years). Good luck.

Answer 5

hi,
i recently opened a demat account in icici bank n came to know abt. that how credit cards work . credit cards r used for quick or online payment if u pay the money using ur credit card the receiver of that money receives the payment from bank and ur bank charges that amount of money at the end of month .u have to give ur credit card no. to the person or the receiver who actually receives the money . receiver can only take amt. from ur bank the amt. u had accepted to pay!

[e-mail]

Answer 6

even with the indisputable fact that I take it which you at the instant are not being intense, right this is an particularly intense answer. God loves you lots and provides you the possibility to positioned on some thing plenty greater superior than a turtle shell, it particularly is called the Armour of God. Ephesians 6:13-18 Wherefore take unto you the full armour of God, which you would be waiting to stand up to in the evil day, and having finished all to stand. Stand for this reason, having your loins girt approximately with reality, and having on the Breastplate of Righteousness; And your ft shod with the prepartion of the Gospel of Peace; in particular , taking the shelter of religion, wherewith you would be waiting to quench all the fiery darts of the depraved. And take the Helmet of SALVATION, and the Sword of the Spirit, that's the notice of GOD: Then persevere with PRAYER and WATCHFULNESS. this might do you greater solid than a turtle shell and it won't slow you down! Little turtles get overwhelmed whilst adequate tension is utilized, however the Armour of God (IF we decide directly to positioned on it) is robust adequate to stand against all the wiles of the devil. it is the only answer which you decide on.

Answer 7

Forget credit cards. Read Dave Ramsey's book

www.daveramsey.com

GOOD LUCK