If you want to rent a car , for example , you really need a major credit card - credit cards have become important sources of identification that is true .
That , in theory , that sounds good.
They can go up to a whopping 23 percent of the finance charges , carry a balance from month to month on their credit cards because but in reality , many consumers are unable to take advantage of these benefits . The numbers are striking : In 1999 , American consumers about $ 1.2 trillion on their general purpose credit card charged .
description of the plan , and will discuss how to avoid credit card fraud - both online and in the real world .
Let 's start at the beginning . A credit card is a thin plastic card , usually 3-1/8 inches in size by 2-1/8 inches , such as a signature or picture identification information , and to purchase or services at the designated person authorized to charge his account - he will be billed periodically , for which the fee . Today , the information on the card, automated teller machines ( ATMs ) , store readers , and bank and Internet is read by the computer is taken . This use increased significantly after World War II .
The first universal credit card - can be used in a variety of stores and businesses that one - in 1950 , Diners Club , Inc. was launched . With this system , the credit card company charged cardholders an annual fee and billed them on a monthly or yearly basis . Another major universal card - " Do not leave home without it ! " - American Express Company was founded in 1958 .
Later came the bank credit card system .charges assembles. Cardholder , in turn , banks
( sometimes called carrying charges ) either in monthly installments with interest or pays the balance .
First National Bank plans in California in 1959 by Bank of America BankAmericard , which was launched on a statewide basis . Starting in 1966, the system was licensed in other
states , and in 1976 was given a visa .
Other prominent former MasterCard bank cards , including MasterCard charge followed .
Borrow money for free
A credit card is not the same as a debit card . You pay for something with your credit card , you are essentially borrowing money - and charge interest on credit card debt . However , for most cards come with 59 -day interest- free period , you pay your bill in full each month , you pay no interest . In other words , you can borrow money for free .
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Monthly payment Spread
If you are unable to clear the debt each month , a credit card can help you spread the monthly payments . But you will start paying interest . A typical rate is approximately 18% on the card , so it is not cheap . You therefore have a credit card as a short term stop gap should think about . Credit cards are not suitable for long-term debt . And always try to pay more than the minimum monthly payment, otherwise it will cost you a fortune in interest and could take years to clear the debt .
Pick a card
There are various different types of credit cards and your credit history
and the right card for you depends on your spending habits .
You always pay your full balance , the interest rate on the card is irrelevant .
So this kind incurred as a cashback card , look for a card that rewards .
If you want to spread the cost of a purchase , then a card that charges 0% on purchases can be a
good deal . Maybe you need a new washing machine , but all at once it can not afford to pay for .
as it is generally worth paying the repair. In addition , fees are paid in advance , it is added to your balance .
Credit history
When you apply for a credit card , the issuer will carry out a credit check . If you have a poor credit history , your application may be rejected . Alternatively, the card company can not offer the advertised rate but instead will charge a higher interest rate .
If you want to spread the cost of a purchase , then a card that charges 0% on purchases
can be a good deal .
This is called risk- based pricing and rate you see advertised Representatives ' annual percentage rate' will
be . The people who are accepting applications for at least 51 % should be offered .
However , that means almost as many - 49 % - cards can be accepted , but they
will be charged a higher rate of interest .
They often charge high interest rates but they can help to improve your credit rating .
Finding the best deal
The choice can be bewildering , but the free independent comparison service MoneySupermarket can help you find the right credit card . We are the nation's largest card issuer Compare hundreds of deals . So , you have a 0 % purchase card , or want a cashback deal , we can search for the best offers on the market .
