How Do Credit Cards Work - CREDIT CARDS

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CREDIT CARDS: How do credit cards work


Many credit cards work as follows: You charge goods or services and the merchant who accepts your credit card sends the transaction information to the card-issuing institution. The institution then bills you, usually on a monthly basis. In many cases, payment may be made by the due date with no interest assessed. If the total bill is not paid by the due date, you often can pay off your debt in monthly payments that include finance charges.

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Credit Card—you Can Use A Credit Card To Buy Things And Pay For Them Over Time. But Remember, Buying With Credit Is A Loan—you Have To Pay The Money Back. What’s More, If The Credit Card Company Sends You A Check, It’s Not A Gift. It’s A Loan You Have To Pay Back. In Addition To The Cost Of What You Bought, You Will Owe A Percentage Of What You Spent (interest) And Sometimes An Annual Fee. Credit Card—you Can Use A Credit Card To Buy Things And Pay For Them Over Time. But Remember, Buying With Credit Is A Loan—you Have To Pay The Money Back. What’s More, If The Credit Card Company Sends You A Check, It’s Not A Gift. It’s A Loan You Have To Pay Back. In Addition To The Cost Of What You Bought, You Will Owe A Percentage Of What You Spent (interest) And Sometimes An Annual Fee.
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