Credit Cards

[AngelsKiss]

but haven't banks started chardging interst per day instead of the monthly cycle?

No they charge interest per day when you take a cash advance so that's something else to look out for. Avoid taking cash advance and just use your credit card for purchases.

[juba]

Lets say you charge $1000 on a credit card with an interest rate of 15% and the minmum payment per month is $25. If you make only the minimum payment, it will take you over 10 years to pay off the $1000 with interest totaling $758.

Now if you add an extra $10 per month to the minimum payment it will cut the time down to 3 years and $245 in interest.

The lesson here is never make the minimum payment.

Credit worthiness here in the US is base on a lot of factors; one particalur one that I've noticed is that it is not good to pay off the balance on your credit card, it lowers your credit score. It looks as though you have credit and not using it.

Currently, when I do use my credit card, I pay off the balance because I am not concerned about my credit score, I have no plans to apply for credit anytime soon.

If I know that in July I am going to buy a car and want to increase my credit score, I would make a purchase on the card, pay the bill, but leave $1 on the balance, this will improve the score.

What is a credit score

[pcchick]

[QUOTE]

The lesson here is never make the minimum payment.

So true...takes you 30 years to pay if off using the minimum payment method. But paying it off in full is good or take 6 months to do it, paying more than you minimum payment. Credit will still be initialized.