A credit card’s interest rate is the price you pay for borrowing money expressed as a yearly rate. For credit cards, the interest rates are typically stated as a yearly rate, called the annual percentage rate (APR).

Credit Card fees and charges

Always try to pay your credit card bill in full and on time every month. Late fees can impact your pocketbook, and late or missed payments can also have a negative effect on your credit score.
Some of the credit card fees are and how to avoid them.

  • Annual fee: Fee you pay annually for the privilege of carrying a credit card
  • Balance transfer fee: Fee charged when you move debt from one credit card to another. The typical fee is 3% to 5% of the amount transferred.
  • Foreign transaction fee: Fee charge of 1% to 3% added onto purchases made outside the U.S
  • Late payment fee: Fee charged when you don’t make at least the minimum payment by the due date
  • Cash advance fee: fee charged when you are borrowing cash against your credit card. Many cards charge a cash advance fee of 2% to 5% of the amount borrowed.
  • Finance charge: finance charge is the interest that accrues on the balance you carry on your credit card
  • Returned payment fee: Fee is charged when your check to the credit card company bounces,
  • Over limit fee: Fee charged when your card’s balance exceeds your credit limit. Cardholders now must opt in to over-limit coverage and the fees that come with it.

Credit Card Approval

Getting a credit card approval can take minutes or even seconds in some instances. You can expect a decision for approval rather fast as many card issuers accept online applications. You can also call the card issuer or mail in the application form to be approved.
If you apply for a credit card that you’re already qualified for then your chances of being approved are much higher. If you haven’t been preapproved or prequalified then you should do some research to understand which card makes the most sense. This way you can avoid bad credit cards and find the right credit card to increase your chance of being approved.

Credit Card vs Debit Card

A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder’s promise to the card issuer to pay them for the amounts so paid plus the other agreed charges.
The fundamental difference between a debit card and a credit card account is where the cards pull the money. A credit card allows you to borrow money from a credit card company, with the agreement you will pay a percentage of interest on any outstanding debt at the end of each billing cycle. A debit card pulls money directly from an associated bank account.
Debit cards and credit cards are accepted at many of the same places. They also both offer convenience and eliminate the need to carry cash.
Moreover, debit and credit cards are treated differently by consumer protection laws. Under federal law, your personal liability for fraudulent charges on a credit card can’t exceed $50. But if a fraudster uses your debit card, you could be liable for $500 or more, depending on how quickly you report it

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