The basics of credit cards

A couple doing some financial planning.

Credit card basics

  • When you pay a portion of your credit card balance over time, you’ll be charged interest each month on the amount you still owe.
  • Therefore, the total amount you end up spending on things may be higher than the purchase prices.
  • If you pay your first credit card statement in full within the grace period, you’ll pay no interest, plus you’ll have your full credit limit to use again

Remember: Once you have a card it’s very easy to use it. But to use credit cards the smart way, you need to know the basics of what they are and how they work.

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