Credit Basics
What is credit?
Credit is the reputation you have earned for paying your bills on time that makes it possible for you to receive loans, etc. with the understanding that you will pay for them later.
Why are some credit cards not available in particular states?
In some states, like Wisconsin for example, consumer laws favor consumers and that restrains some credit card issuers. Whether or not a particular credit card offer is made available to Wisconsin residents or residence of other states depends entirely on the bank and varies with each credit card issuer.
Are there any hidden costs associated with credit cards?
Technically, there are no hidden costs associated with credit cards. However, there may be application fees, start up fees, late fees or annual fees. Any fees of this kind will be laid out for you in the application process. The best way to know all the charges you may be receiving is to read carefully every piece of information that you sign your name to.
What is a grace period?
A grace period is the amount of time after a due date of a bill that may pass before late fees are applied. Grace periods are usually 10-25 days and may depend on the company.
Why is credit important?
If you are looking for a loan, credit card, or low interest rates, having good credit will increase your chances of getting one of these. If you have credit problems, it may be hard to acquire a loan when you need it the most.
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