Credit cards Explained

Popular Credit cards guide right now

Credit Card Interest Rates And Other Charges

Credit card companies survive on interest rates and other charges that are a result of penalties and fees. Almost all credit card companies have made it even easier for them to earn interest by giving the option of making minimum payments. Even if a person makes minimum payments interest will be charged on the account; however, it won’t be considered as a missed payment.

Calling Cards

A calling card is a type of pre-paid credit card that can be used to redeem telephone or cell phone minutes. When people purchase a calling card, they are in effect purchasing minutes up-front. Numerous phone companies manufacture calling cards and there are two basic types of calling cards. One that is used “pay as you go” and the other is used for long distance landline phones.

Identity Theft

Identity theft is a type of fraud in which someone pretends to be you in order to gain personal information, steal money, or receive financial benefits. Identity theft is somewhat similar to and is a subset of identity fraud. Identity theft itself may not pose a problem unless such theft is used for committing the fraud. According to a survey, ten million people were victims of identity theft in the United States alone. In light of such sobering figures it becomes important to make sure that you do not fall prey to identity theft or identity fraud.

Types Of Debts

There are many types of debts including credit card debt such as mortgage and cash advance loans. These debts can be broadly categorized into good debts and bad debts depending on their features and impact on a person’s credit history. Taking out a mortgage on a home is generally a good kind of debt. Not only does a home loan typically have lower interest rates and tax benefits, but a house's value could increase over time, making it a good investment, unlike credit card or cash advance debt.