How Credit Cards Work: Robins Financial Credit Union
Credit cards have become very common in our world. Like any other tool, if you use one, or are planning to use one, you should know how it works – so you can use it wisely. A credit card is a very easy and convenient way to borrow money. When you get a card, you are approved for a line of credit from a lender. That means you can borrow money any time – at a restaurant, a store, online, or anywhere that accepts credit cards. But you need to know the costs involved with using a credit card. First, some cards come with annual fees. Be sure to review the small print of any credit card application you fill out to see if there’s a fee, sometimes they won’t kick in for the first year or so. Second – and this is a biggie – if you ever miss a payment, or are late, you will be charged a fee. This kind of fee should be completely avoidable, if you are organized. Third – pay attention to the interest rate for the card. Any time you fail to pay your monthly balance in full (not just the “minimum balance”) For one, if you always pay it off promptly, it’s a great way to build your credit score. Also, many cards now offer points or cash back. – you will be assessed interest on that remaining balance. This can very quickly become expensive and get people buried in credit card debt. There’s another possible cost that’s harder to measure: if you regularly miss payments or carry large balances, you can hurt your personal credit score which may make it harder for you to borrow money in the future. But remember – there can be great conveniences and benefits to a credit card. For one, if you always pay it off promptly, it’s a great way to build your credit score. Also, many cards now offer points or cash back. These features may offset annual fees, or put a little extra money in your pocket. And finally, some cards offer protections on your purchases, or insurance on rentals you make with them, which is always a nice perk! our Robins Financial Credit Union Visa Platinum Rewards credit card has many great perks! and no annual fee Explore if one is right for you. For more information call, click or visit any of our branch locations.