Credit Cards

First off, one must have a rough definition of what a credit card is. A credit card is a card issued by a financial company (such as Visa or Master Card) giving the holder an option to borrow funds, usually at point of sale. You can apply for a credit card online, at your local grocery store, or even through the mail. Credit cards charge interest and are primarily used for short-term financing. Interest usually begins one month after a purchase is made and borrowing limits are pre-set according to the individual's credit rating. Unfortunately, there are tons of different charges that occur with a credit card that can seem a bit confusing. An annual fee is a yearly fees charged for the convenience of having the credit card that can range from $25 to $300 however some cards do not charge a annual fee. Interest rates, otherwise known as a finance charge, is a  monthly interest charge for the the convenience of carrying a credit card balance beyond the grace period. A typical interest rate is around 14%. A late fee is A charge for making less than the minimum payment or payment after the due date or both. Late fees range from $25-$35 but if you pay your bills on time, you don't have to worry about late fees. An over charge fee is when you have a balance above your credit limit. Having a credit card and making payments each month is an easy way to build up your credit history and have a good credit score along with the fact that you can buy something right away if you don't have the cash on you but it can lead to serious high interest and can lead to irresponsible spending. 3 tips every person should know about their credit cards would be to make your payments on time, understand the terms of your credit card, and be responsible by not buying anything you can't pay off. 

Resources: http://www.creditcards.com/credit-card-news/credit-card-glossary-terms-first-credit-card.php
                 http://www.fraud.org/telemarketing/teletips/cardtip.htm
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News Story: http://bucks.blogs.nytimes.com/2012/12/13/late-credit-card-payments-low-and-expected-to-stay-there/
Video: http://www.youtube.com/watch?v=gkg03eusG-A