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Basics of Credit Card
Credit Card Types
Credit Card Issues
Info On Credit Card
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Interest "Interest" may be defined as compensation to the lender for deferring use of funds in order to grant a loan to an applicant. In a normal loan scenario the actual amount of the loan is referred to as the principal with the interest being a percentage applied to that amount and payable as an aspect of the periodic repayment schedule. In terms of a credit card, interest rates normally apply to unpaid balances. If the cardholder pays the total amount charged in a given statement period, no interest applies, however if a balance is "carried over," the card company is carrying the debt for the creditor just as any lending entity would. At that time, interest applies to the unpaid balance and is added to the next statement. All credit card companies have different methods of calculating and applying interest, which is why it is extremely important when applying for a new card that the applicant carefully read the terms of the card agreement. More Credit-Card Terms Explained |
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