Credit Cards

Credit cards are small, plastic cards that consumers can use as payment. With credit cards, consumers are able to purchase goods and services. They have a continual balance of debt. Some charges associated with credit cards are interest rates, APR, late fees, and over charge. Interest rates can be avoided if holders pay their bill in full each month. If the bill is not fully paid, the holder must pay interest on the remaining amount. APR is the annual percentage rate. It is the rate of interest for the entire year. APR can be calculated by multiplying the rate for a certain pay period by the number of payments in the year. Late fees are charged to holders when payments are not paid on time. Over charge is when the holder charges more to the card than they have. Fees are put in place and vary from company to company.

To apply for a credit card you must first choose a company. Then it's simple. For example, with discover you can online to apply. The steps are laid out and easy.

Pros for owning a credit card: Can spend more money than you have, can receive rewards, can build up good credit.
Cons for owning a credit card: Fraud, debt, over charge.

Three tips for owning a credit card:
1. Pay your bill in full every month.
2. Don't give out your credit card information.
3. Don't hold too many credit cards.


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Source: http://en.wikipedia.org/wiki/Annual_percentage_rate