Credit Card Key Points

Key points about credit cards

There are lots of important considerations when choosing a card or deciding whether a credit card is right for you. Keep these key points in mind.

They are a way to borrow money

Credit cards may look like debit cards, but they function completely differently. Every time you make a purchase with a credit card, you are borrowing money from the creditor (banks, credit unions) and you are expected to pay it back. 

It costs money to carry a balance

Unless you pay your balance off in full and on time, you will owe additional money to your creditor in interest charges and fees. The APR, which may be fixed or variable, determines the cost of borrowing money annually. 

There are many options available

Credit cards come with a wide variety of features, fees, and rewards programs. To decide whether getting a credit card is the right choice for you, do your research and compare offers from multiple creditors. You may want to