Annual Percentage Rate (APR).
A measure of how much your debt is costing you.
Expressed as an annual rate of the amount of interest you would pay annually.
The higher the APR, the more money that will come out of your pocket.
Minimum Payment Due
The amount of money you must pay on your credit card each billing cycle to remain in good standing with your creditor.
Usually covers the finance charges and fees for the month plus a small amount of principal.
The credit card companies only want you to pay the minimum payment.
If you fail to make the minimum payment you will be putting your financial health in jeopardy.
creditors can raise your APR even if you are one day late.
Strong credit reports are dependent on good credit card management.
Making the minimum payment on your credit card bills just extends the life of your debt.
The unpaid amount or what you still owe. It is usually determined by:
The previous month balance
Less any payments or credits
Add New Charges, fees and finance charges for the current period.
ALWAYS CHECK EVERY PURCHASE ON YOUR STATEMENT.
There can be charges that are wrong on your statement.
Line of Credit
Is a type of revolving loan(The amount you borrowed always changes) with a preapproved credit limit.
It gives the borrower flexible access to funds, whenever they need it.
All major banks offer lines of credit.
The borrower can withdraw part or all available funds from his line of credit.
In some senses a line of credit is very similar to a credit card.
A line of credit is secured by an asset owned by the borrowed
One of the major benefits of credit lines is the fact that they have lower interest rates compared to most credit cards.
Types of Credit Cards - 4 types
No-fee card often issued by banks
No annual fee
Offer lower interest rates than store cards
often no rewards
suitable for students
Preferred-rate card often issued by banks.
Typically do have an annual fee.
Often have lower interest rates than no-fee cards.
Businesses often use these cards.
Carries the logo of the…