How do you pay back the amount of money you used with a Credit Card?

Question

Can you also tell me how you use one? like how long you have to pay it back, do you get charged interest? How does it work? I've only heard that it's about a month's time and if you pay before the date, you dont get charged interest. but I have no idea how you pay it back? Thank you~

Answer 1

First you apply for a card. The company will ask you about your basic income and expenses. If they approve your card will be sent to you in the mail. You call a phone number on a sticker on the card and give them some basic identifying information. When you do this the card is activated and you can begin charging goods at stores or online.

When you use a credit card the company pays the merchant where you charged your goods. They send you a bill that states how much you spent at each store.

You can pay the whole bill at once. If you do that you owe them no interest. If you choose to carry an unpaid balance then you can make monthly payments. The credit card company then charges you a fee called "interest". They add interest to your bill every month that you carry a balance.

They will suggest a minimum payment but if you choose to pay just that it could take 20 years to pay off even a small amount. So always pay as much on the balance as you can afford.

It's better to live on cash if you can. If you're trying to build up a credit history then charge only small things that you can easily afford to pay back (like dinner out once a month or a new CD) Then pay the bill in full.

But it's hard not to get carried away and charge a lot of stuff. So you have to use a lot of self control. If you go over your limit the credit companies will charge you an extra fee and it'll be harder for you to pay the bill.

Answer 2

<>You can use a credit card for purchases in lieu of cash money at any location that accepts them. You must pay the "minimum amount" on the bill each month, which you can do by sending a check (or, if you really want to live dangerously, by using another credit card). You can take (almost) as ling as you want to pay off the balance,,,the credit card company is perfectly happy to keep charging you interest. You get charged interest monthly and the rates can vary greatly, so before you use a credit card, make sure you know what the rate is. You will probably have to pay a small amount of interest even if you pay everything back quickly, because of the way they calculate the interest.

Answer 3

Look at how much income you have. that is how much you charge. "DON'T focus on minimal payment., but full payment.