Credit cards and all the terms relating to the finance world can be sort of hard to understand right? But honestly, the more you understand finances, the more ways you know there are to increase your incomes. So, I find this to be key if you want to guarantee your financial success.
Now, I know we were not just born knowing everything there is to know about finances so, I want to help you out a little today by teaching you some new words. And by the way, most of these terms are obviously, relating to credit cards. So you don’t need to worry about complex terms like prepaid card program just yet!
This is like the equivalent of a school report card of how well you did over the year. Difference is, in this case, a three digit number will define how well your credit score is.
Obviously you want to keep this score as high as it can be since this mean the bank will trust you more by lending you their money. So, if you want to ask your bank for a loan, you better work on your credit score as this will very much influence on the road your bank takes with you.
The minimum payment
This is a term you are going to want to be familiar with if you want to keep that credit score as high as it can be! Each month, you will receive a credit card statement and if you want your bank to even consider giving you a loan, make sure you are paying AT LEAST the minimum payment on your credit card.
When I am going to pay the minimum, I always try to pay a little bit more to make sure the banks knows, I’m up to date with my payments and that I am trying to not get behind on them.
The over the limit fee
This is a territory that you do not want to venture in if you want to keep your bank as happy as they can be with you! Why? Because this is a fee your bank will charge you for spending over your credit card limit!