Credit Card Research Paper

851 Words 4 Pages
Having a good debt-to-available credit ratio will help you attain a good credit rating. The less debt you have compared to available credit, the better your credit rating. To learn more about how important credit cards are to the overall credit rating process, visit myFICO.
Since having good credit is important, knowing how to minimize the charges you pay to credit card companies is also important. Monthly finance charges, fees, and penalties can become quite costly over time. However, there are a few ways to save on your credit card bill.
Use credit cards only if you have the money to pay off the balance. If you stick to using credit only for things you can already afford, you will not run the risk of carrying balances from month to month. Although this is much easier said than done, consider the
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Grace period: The time between the “closing” of the account and the date the bill is due. This is usually around 20 to 25 days, but you need to check with your credit card company to find out the terms of your grace period. (Note: Some credit card companies do not offer grace periods on purchases if balances are carried from one month to the next. In this case, finance charges will immediately apply to all purchases.)
In order to save money and still carry a balance on your credit card, you need to take all of the above factors into consideration. The earlier you pay your bill, the lower your finance charges are likely to be for the following month. For examples of how payments affect interest rates, visit the Care One Credit Counseling website.
Pay attention to the interest rates, not the perks. Many credit cards, especially department store credit cards, offer perks or rewards to customers for using them. Before you commit to such a card and make large purchases, be wary of high interest rates. Some store credit cards offer decent rates; however, most usually charge significant

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