Few terms about credit card…
May 29, 2008
If you are thinking to apply for credit cards, you should know few terms. These are a credit score, credit limit, interest rate and finance charge.
Your credit score is important in getting credit card. Your credit score decides that which of card type you will get. It is figured out by your credit history and the amount of your credit.
Credit limit is the amount of credit. You will be paying extra fees if you spend out of your credit limit.
Interest rate is the rate at which finance charges will be calculated. Those who have sound credit history are given lower interest rates.
Finance charge is the amount of interest incurred on the amount.
Compare conditions of various credit cards and choose credit card which is suitable to you. Follow the rules. Never spend beyond credit limit. It will gradually assist you in keeping good credit history.
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