Credit Cards... Cha-Ching!

Getting a credit card can be scary, especially if you don't fully understand them. It is a huge responsibility and if not kept up with, can hurt your future credit score.

I know I needed help understanding the terms and different types of cards. So here is the glossary of terms I found most important when selecting a credit card!

Credit Card Terms:

Annual Fee- A yearly fee to have the credit card. Many credit cards have no annual fee while others have a $500 annual fee.

APR (Annual Percentage Rate)- The amount of interest on your total amount that you did not pay off. This rate is applied each month that an outstanding balance is present. Some credit cards give you a grace period with 0% APR.

Authorized User- A person who has the same charging privileges as the primary card member but will not be financially responsible.

Cash Back- A reward offered by some credit cards. When you spend a certain amount or buy certain things, they offer you a cash back reward. Make sure you don't forget to redeem your rewards!

Credit Report- The formula and history that scores a persons Credit Score.

Credit Score- A three digit number that tells how well a person or business has handled debt. The higher the number, the better. In the U.S. the average score is 687.

Grace Period- The period of time during which a person is allowed to pay your credit card bill without having to pay interest. (*see APR)

Minimum Monthly Payment- The lowest amount of money you have to pay per month toward your charges. You can pay more but not less then this amount.

Primary Card Member- A person who responsible for paying all balances on the account.

Now that you understand the terms, finding the perfect credit card for you will be easier!

Good luck