By J. Paventi
Credit cards are the tangible proof of a line of credit extended by a bank. As part of the terms and conditions of the credit line, the bank has the right to charge interest on an annual basis. The interest rate, or annual percentage rate, is based on the prime rate set by the Federal Reserve plus the bank's desired rate of interest. That desired addition is based on the borrower's credit ...
By Angela Tague
Many financial institutions offer their customers a debit card. This plastic card is used in ATM machines or at the point of purchase to pay for goods and services directly from a checking account. When using this card, merchants or ATM machines often ask the user for her PIN or debit-card number. This numerical password should be kept confidential to help deter theft of funds from a bank...
By Jeannie Knudson
When people are in debt and find that they can no longer pay their monthly bills, credit card debt is usually the first bill defaulted on. People become strapped for cash for various reasons, including job loss, medical bills or poor money management. There are repercussions when someone doesn't pay credit card debt and the effects of letting credit card debt go unpaid can affect not only...
By Barbara Alvarez
Millions of high-school juniors and seniors are being targeted by credit-card companies as potential new customers. These companies pay very close attention to their consumer demographics, and they know just how powerful teens are as new spenders. What is good for the bottom line of these credit-card companies is not necessarily good for the teen or his family, especially if he is not...
By Mary Weir
The pressure of signing up for a new credit card at every turn is all around us. Every store where we shop offers an extra discount on our purchase if we apply for their credit card on the spot. Visa, Mastercard, Discover and American Express are all offering 0 percent interest on new purchase and balance transfers "for the first 6 months," and we leap at the opportunity to consolidate...