The minimum payment on a credit card is designed to keep your account in good standing, not to get you out of debt. On a typical card, the minimum is a small percentage of the balance plus interest, which means most of each payment goes to the issuer rather than to what you owe. Consider […]
Credit cards are convenient enough that their costs often slip by unnoticed. A few small charges each year can add up to more than an annual fee. Here are five worth checking on your next statement. 1. Late fees Missing a due date by even a day can trigger a fee and, after repeated misses, […]
Rewards cards fall into two broad camps. Cash back cards return a percentage of what you spend as money you can use however you like. Travel cards earn points or miles that are worth the most when redeemed for flights and hotels. The better choice depends far more on your habits than on the headline […]
A balance transfer card lets you move high-interest debt from one card to another that charges 0 percent interest for an introductory period, often between 12 and 21 months. Used well, it can save hundreds or even thousands of dollars in interest. Used carelessly, it simply delays the problem. The first cost to account for […]
Credit utilization is the share of your available revolving credit that you are currently using. If your cards have a combined limit of $10,000 and your statements show $2,500 in balances, your utilization is 25 percent. It is one of the largest factors in most credit scoring models, second only to payment history. Scoring models […]
Your first credit card is less about rewards and more about building a track record. Lenders want to see that you can borrow small amounts and pay them back on time, month after month. The right starter card makes that easy; the wrong one quietly charges you for the privilege. Start by checking what you […]
