The most commonly used credit cards are Visa and MasterCard.
There are others, of course. With a credit card you will be
issued a credit limit. Depending on your credit history and
the type of credit card, the limit can vary greatly. Some
cards may only have a limit of $250 others may be in the 1000’s.
A business credit card may have a limit of $50,000 or more.
You are able to charge up to your credit limit.
Each month your credit card company will send you a bill.
You will be shown a minimum payment that you must make. There
is always the option of paying off your balance in full each
month. You can also pay more than the minimum due amount.
This provides an excellent way to pay off your credit card
When you make a purchase with a credit card at a store, restaurant
and other places, you will be asked to sign a receipt. The
store will keep a copy of your signed receipt. They may ask
to see your credit card to ensure that the signatures match.
If you shop online, you will not be able to sign for your
purchase, of course. Instead, you will need to enter some
information. The credit processing service will make sure
that the information you entered matches the information on
file with the credit card company.
Most credit cards work in the same way. There are differences
with secured credit cards. However, with most cards you will
receive a credit limit. If you go over that limit, you will
most likely be charged over limit fees. Credit card companies
will charge you fees if your payment is late. Each credit
card will have an interest rate. Interest is applied to your
remaining balance on your card each month. The rates of interest
vary between credit card companies.
Credit cards do provide a way for people to make purchases
when they do not have enough cash to do so. This is not always
a bad thing as long as people are responsible about working
to pay off their balance as soon as possible. It is also important
to make sure that you budget enough money to make your credit
card payments each month. Credit cards can also be helpful
in an emergency when you are short on cash.