How does credit cards work?
We all know and love our magic little card that can buy us anything. But how does it actually work?
Paying with a credit card is it like having a loan for the amount you spend using the card. And you at the end of the month you payback the amount you spent. In other words, your credit card company pays for the thing that you bought now and you pay the credit card company after.
Also if you pay off the bill in full each month, you won’t pay interest on what you’ve borrowed. If you make cash withdrawals though, interest is usually charged on a daily basis from the day you take your cash.
Credit cards are very easy and useful but, we need to keep track on how much we spend on it or we might get in serious trouble.
A simple guide to credit cards. (n.d.). Retrieved from https://www.moneyadviceservice.org.uk/en/articles/credit-cards
How Does a Credit Card Work? A Guide and Credit Card Definition. (2019, March 18). Retrieved from https://www.creditcardinsider.com/blog/how-does-a-credit-card-work/
Paying with a credit card is it like having a loan for the amount you spend using the card. And you at the end of the month you payback the amount you spent. In other words, your credit card company pays for the thing that you bought now and you pay the credit card company after.
Also if you pay off the bill in full each month, you won’t pay interest on what you’ve borrowed. If you make cash withdrawals though, interest is usually charged on a daily basis from the day you take your cash.
Credit cards are very easy and useful but, we need to keep track on how much we spend on it or we might get in serious trouble.
A simple guide to credit cards. (n.d.). Retrieved from https://www.moneyadviceservice.org.uk/en/articles/credit-cards
How Does a Credit Card Work? A Guide and Credit Card Definition. (2019, March 18). Retrieved from https://www.creditcardinsider.com/blog/how-does-a-credit-card-work/
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