Category: Credit Card 101

What Is a Credit Card Billing Cycle?

A credit card billing cycle is the period of time between billing statements. The length of a billing cycle varies by card issuer, but is typically about one month. Learn more about billing cycles and how they work. What Is a Credit Card Billing Cycle? The billing cycle for...
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What Is a Credit Card Issuer?

A credit card issuer is a bank or credit union that offers credit cards and extends credit limits to cardholders who qualify. When consumers make credit card purchases, the credit card issuer is responsible for sending payments to merchants for purchases made with credit cards from that bank. The top U.S....
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What Is a Credit Line?

A credit line is a type of loan that allows an individual or business to borrow money and repay it, often on a revolving basis without applying for a new loan. Learn about the different types of credit lines and how they work. What Is a Credit Line? A credit line,...
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What Is Credit Card Churning?

What Is Credit Card Churning? Credit card churning involves frequently applying for new credit cards, not necessarily to use or even keep them, but rather to take advantage of lucrative sign-up or welcome bonuses in the form of cash or rewards miles or points. By opening many cards, you can rack...
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How Does a Prepaid Credit Card Work?

Many Americans are unable to qualify for a credit card—or they simply don’t want to. But, in today’s world, it can be difficult to function without one. The good news is, prepaid credit cards offer a way to get many of the benefits of standard cards without some of...
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What to Expect With Your First Credit Card

Getting your very first credit card is exciting. For many young adults, it’s the next best thing to getting your driver’s license or turning 18. But, although credit cards can be fun to have, they also bring a lot of new responsibility. Here’s the short version of what happens...
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How to Prepare for a Credit Card

A credit card is a plastic form of payment that lets you make everyday purchases without carrying cash. But while these cards seem easy to use, you can get into debt and damage your credit without knowing the basics. With a solid financial foundation in place, you’ll be better prepared to...
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Credit Card vs. Debit Card

While credit cards and debit cards look identical, they function in very different ways. With a credit card, you’re borrowing money from the credit card issuer. With a debit card, you’re using money from your checking account to pay for purchases. To use a debit card, you also need...
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How Credit Card Minimum Payments Work

To avoid paying interest, you typically have to pay your balance in full on or before your due date. However, the credit card issuer usually doesn’t require you to pay back all of what you owe at once. You must pay at least the minimum payment by the due date to...
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How Credit Card Interest Works

The credit card issuer gives you a certain amount of time to pay back the entire amount that you’ve borrowed before you’re charged interest. The period of time before the interest is charged is called the grace period, which is typically between 21 and 25 days. If you don’t pay...
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