Credit cards 101

Shop around

• If you decide you are going to have a credit card.

• Each credit card company charges fees for different services.

• Ask questions?

APR • Annual percentage rate is the yearly

cost of carrying a balance on a credit card.

• If you have a good credit rating you can qualify for a better APR.

Annual fee

• The charge imposed yearly to use a specific credit card.

• Some cards may not have an annual fee.

Available Credit

• The amount of a credit line that has not been used. Available credit equals the “credit limit” minus the “current balance”

Ex. If you have $500 credit limit and you spent $200 your available credit is $300

Over the limit fee • A fee charged for exceeding the

credit limit on the card.

Credit History

• An official record of detailing how people manage their debts.

• Credit history can be used in determining whether you will or will not qualify for a loan.

• You need to have established a good credit for many reasons.