What is a secured credit card?
A secured credit card is a credit card that requires
a security deposit. These types of credit cards are
generally for people with no or damaged credit. Your
credit line will represent a percentage of your
security deposit or savings account balance. If you
establish good credit with the card, the credit card
issuer may extend your credit line or offer you an
2) What is an unsecured
An unsecured credit card does not require a security
deposit. Such credit cards are intended for
individuals with good or excellent credit.
3) What is a grace period?
A grace period is the amount of time the card holder
has to pay the balance, before interest is charged
to the balance. Grace periods vary, but usually
range from 10 - 25 days depending on the credit card
4) What is a balance
If you already have a credit card, you can transfer
your existing balance on the previous card to a new
card. Some credit cards offer low balance transfers.
5) My credit is damaged.
Can I still get a credit card?
Yes. Even if you have bad or damaged credit, you can
still obtain a credit card. You will most likely
have to apply for a secured credit card, which
requires a security deposit.
6) What is an Annual Fee
A flat, yearly charge similar to a membership fee
7) What is an Annual
Percentage Rate (APR)
The APR is a measure of the cost of credit that
expresses the finance charge, which includes
interest and may also include other charges, as a
8) Finance Charge
The dollar amount you pay to use credit. Besides
interest costs, it may include other charges
associated with transactions such as cash advance
How do airline mileage
airline mileage plans co-branded, issued by a
financial institution and an affiliate airline.
Typically, air miles are earned with every use of
the card. Most cards offer one mile per dollar
spent. These earned miles are transferred to the
cardholder's account with that airline, where they
may be redeemed. Some banks also offer airline
mileage plans without affiliations, and the customer
may choose the airline.
What additional fees should
I be aware of when applying?
is important to understand that card issuers are
required by law to disclose any fees to customers.
You must read all the fine print to discover these
disclosures. Some cards have an
"over-limit" fee, which is usually $20 to
$25 when you have charged something beyond your
credit limit. Another fee to be aware of is a late
payment fee, which again ranges from $20 to $25, for
payments made after the due date. There is also
often a transaction fee for cash advances. This fee
may be a set rate, such as $2, or a percentage
(commonly 2%-5% of the amount advanced), or a
combination of the two. These fees are in addition
to the regular interest rate.
What is the benefit of
having a gold or platinum card?
gold and platinum cards are set apart from other
cards because of their higher credit limits and
extra perks. They vary according to each card
issuer, as well as the credit status of the
customer. Various features that these cards offer
include car rental collision insurance, travel
accident insurance protection, and extended warranty
insurance. Often, a higher household income is