Unsecured Cardpick - What's New Archive (August, 2005)

What's New > August, 2005 What's New Archive

Tuesday, August 02, 2005

Understanding your unsecured credit card is the key to having great credit. Many people chooseto use unsecured cards because of its convenience. However, with convenience comes great responsibility. Before you accept any unsecured credit card offers, make sure you understand how your unsecured student credit card works.

Credit Cards Explained

Credit cards a merely a borrowing tool. You are telling the bank that you will pay them back in order to buy something. The bank lends you the money expecting you to pay them back within a certain amount of time. You are required to pay back the amount borrowed in full, plus interest.

Young Card Holders Beware!

If you are at least 18 years old, you have probably been bombarded by credit card companies. The trick is to figure out which unsecured student credit cards are right for you. Consider the intersst rates and unsecured card benefits. Choose anunsecured credit card offer teh has the lowest annual percentage rate (APR). The APR is basically a yearly interest rate. In addition to the APR you may also have to pay transaction fees. Some guaranteed unsecured credit card companies charge you for using payment defaults and if you exceed your limit. Some companies charge a fee if you use the card or not. As the card holder, it is up to you to inquire about all monthly charges before you accept the card.

Protect Your Financial Future. Use Your Credit Wisely.

Although unsecured visa cards are convenient, they are an easy way to fall into debt. It is very easy to loose track of how much money you have spent. If you charge on your card while having an outstanding balance, you debt can increase. Eventually the amount you owe will be too overwhelming, and will take a few years to pay back.