Advantages/Disadvantages of Credit Cards

The disadvantages of credit cards...

convenience & overspending, high interest rates, annual fees, penalties, and credit card fraud

The advantages of credit cards...

convenience, safety, purchase protection, rewards, history of purchase, and building positive credit

The most commonly used type of credit is...

credit cards

Credit cards can be...

dangerously misused

Credit Limit

The highest amount of money that can be charged on your credit card account.

Annual Percentage Rate (APR)

The interest rate you will be charged if you carry a balance on your card. This rate is applied each month you carry a balance.

Minumum Payment

The least amount of money you are required to pay toward your current credit card bill each month.

Annual Fees

some card companies require this, even if you don't use the card

Introductory Rate

the APR you will be charged for the first several months after getting a new credit card.

Over-the-limit fee

-A fee charged when your balance goes over the credit limit.

Revolving credit

A type of credit that can be used repeatedly with the option of paying the balance in full or making monthly payments.

Due Date

The date your payment must be paid.

Finance Charges

The extra money you pay in addition to the amount you borrowed.

Free Period or Grace Period

The time period before the due date that you are allowed to pay your bill without having to pay interest.