Everything You Need to Know About Credit Cards SUBSCRIBE:
***************************************
Video Breakdown:
What is a Credit Card: 0:40
Standard Credit Card: 0:53
Charge Card: 1:23
Secured Card: 1:52
Credit Limit: 3:05
Credit Card Interest Rates: 4:30
Credit Card Fees: 6:45
Balances and Payments: 8:48
Dates: 10:45
Creditworthiness: 11:34
Credit Card Perks: 12:48
Other Considerations: 11:53
So What's The Big Deal: 15:55
***************************************
Article Breakdown:
What Are Credit Cards:
Credit cards are great ways to build credit and get discounts, but do you really know what they are? At the most basic level, a credit card is a short-term loan provided by a bank or financial institution. In exchange for the borrowed funds, banks receive full repayment, plus interest and fees per transaction.
Types of Credit Cards:
Standard Credit Cards: Standard credit cards give borrowers a set credit limit, variable interest rates, and manageable minimum payments. Consumers spread the repayment of the balance out over time by utilizing the minimum payments. This allows consumers to spend more but accumulates interest every day.
Charge Cards: Charge cards have no limit, but must be paid back in full every month. Since the balance is due in full every month, charge cards don't have set interest rates.
Secured Cards: Individuals with not so stellar credit history can opt for secured credit cards. This option requires the borrower to put down a downpayment to use the card. Yes, consumers in this category must pay to use their own money. This option should only be used as a temporary credit builder solution.
Credit Limit: A credit limit is the amount of funds a bank is willing to lend a borrower. This is the maximum amount that the borrower can use at any point in time. The limit on credit cards is considered revolving, and thus repayment frees up additional funds. The entire limit can be put towards purchases or cash advances but must be paid back at once or overtime. Your credit limited is determined by your creditworthiness and income.
Interest Rates: A credit card's interest rate is the amount of money charged for the privilege of borrowing money. Interest rates range from the low single digits to upwards of 25 to 30%. Interest fees accumulate daily or monthly based on the outstanding statement balance and lender. Your credit cards interest rate is also based on your creditworthiness, but can also vary based on lender preferences.
Annual Fees: Annual fees, come with higher and lower-end credit cards. These fees only grant access to the credit card and do not provide any actual value
Late Payment Fees: Fees are required when a cards minimum payment is received after the specified payment due date. Although minimal in cost, late fees stem from late payments which trigger higher penalty interest rates.
Foreign Transaction Fees: Fees charged for using your credit card out of your assigned home country.
What's the Big Deal:
Credit cards should be used to build credit and as a supplement to cash only in emergencies. Credit can be a great tool if used responsibly, but individuals should not overextend. When in doubt, always pay cash if you can.
***************************************
Similar Videos:
Credit:
Budgeting:
Investing:
***************************************
Becoming Financially Fit Additional Help:
Original Article – Everything You Need To Know About Credit Cards:
Blog – Becoming Financially Fit:
Blog Updates - Becoming Financially Fit:
Social Media:
Facebook:
Instagram:
Twitter:
LinkedIn:
YouTube:
***************************************
Becoming Financially Fit Channel Goals:
I want to help you become financially fit so you can take charge of your financial future. This channel is dedicated to teaching individuals the basics of savings, investing, budgeting, and financial planning in order to become financially fit.
***************************************
#EverythingYouNeedToKnowAboutCreditCards #CreditCards #BecomingFinanciallyFit
0 Comments